Inheriting a tenant

[Matt Slease]

So it looks like my offer was accepted on my first rental property!

The property already has a tenant in place that’s been there for 8 years and pays on time, keeps the place decent.

I’d like to keep the tenant and he’d like to stay... I guess I’m not sure where I start with this?

Do I go month to month for the first few months to see how it goes and then go for the 1 or 2 year lease?

The rent is probably slightly under market value for the neighborhood and condition, but it still cash flows alright for what I need.

What would you guys (and gals) do?

[Landon Clipp]

Your tenant has been living there for 8 years which means that the previous owner either let them live there for 8 free years, or hasn't had problems with them. The latter is more likely. I wouldn't sweat it, this sounds like an easy deal.

I also just recently inherited tenants. They have been living at the property for a reasonable amount of time. I would only be truly scared if the current tenants were there for less than a year. An owner renewing a lease can surely only mean they were at least paid. If they weren't the best of tenants (paying late), you have the option to not renew, or evict, depending on your assumed contract.