Raising rent after acquisition on 4-plex with tenants in place

[Keith Richardson]

I am acquiring a 4-plex in Texas that has tenants in place. The seller just renewed the leases 4/1. The rent is well under market and I would like to raise it accordingly. As I understand it these leases will transfer to me at closing. What are my options?

[Mary M.]

You are buying contracts and you must abide by them until they expire. So check to see what the lease expiration dates are.  Also check to see if the lease states what the options are at the end of the lease. 

Be sure you know how much deposit has been paid on each unit and i always ask for the deposit funds to be paid to me via check and not on the closing statement as a credit. 

Good luck!