Tips for inheriting tenants

[Daniel Dube]

Hey team,

I close on a 10 family on Friday. This is my first purchase. Every unit is filled and they have all been there for some time. Only a couple of them have current leases though. My question is should I have all the tenants who are month-to-month fill out new applications and send them through the whole process, or just sign new leases and let sleeping dogs lie? 

Thanks Team

[Michael Garofalo]

@Daniel Dube you're most welcome and thanks for the additional context. Honestly, if it was me I would wait a full month, see how they behave once you take over and how they pay rent when it is due in April, and then issue fresh lease Agreements to go into effect 5/1/21 for the ones you feel good about. Aside from seeing who pays, talk to the residents who have been there the longest to try and get a feel for anyone who causes disturbances or intimidates other residents at the building. For any that give you trouble before 5/1, move forward with eviction on the basis that they do not have a current valid lease in place and you do not wish to renew for reasons x y z. 

When you issue the new leases, I would not recommend by starting off with having them fill out paperwork and undergo background checks. Think about it from their perspective--many of them may consider the building to be their home, if they have lived there for years. Asking them to undergo all of that will, in my opinion, eliminate any chance you have at building genuine trust and rapport with each of them. If after you issue new leases to them and they do something to break the law, or otherwise violate the agreement, then move to evict them at that time.