Questions on Handling Inherited Tenants

[Joy Shaw]

Hello everyone! I am recently closing on a multiunit. One of the current tenants has not paid rent for 6 months. The previous landlord does not have a written lease, he has just been renewing the lease verbally so technically she does not have a lease now. When I'm taking over the apartments I will have them all sign a new lease. I would just like some suggestions on how I can handle this situation. I think I can either have her sign the lease and hope that she will pay on time with me. I am leaning towards not having her as a tenant though. If I don't want her as a tenant what ways can I handle this without causing too much problem? 

Also another question, the previous landlord did not collect security deposit. How can I go about collecting it without making them upset?

Thank you so much!! 

[Nathan Gesner]

Originally posted by @Joy Shaw:

Hello everyone! I am recently closing on a multiunit. One of the current tenants has not paid rent for 6 months. The previous landlord does not have a written lease, he has just been renewing the lease verbally so technically she does not have a lease now. When I'm taking over the apartments I will have them all sign a new lease. I would just like some suggestions on how I can handle this situation. I think I can either have her sign the lease and hope that she will pay on time with me. I am leaning towards not having her as a tenant though. If I don't want her as a tenant what ways can I handle this without causing too much problem? 

Also another question, the previous landlord did not collect security deposit. How can I go about collecting it without making them upset

The non-paying tenant is on a month-to-month lease. On the day you close, hand them a 30-day notice to vacate, terminating their lease. This is not an eviction and it is not protected by the CDC eviction moratorium. Don't negotiate.

As for the other renters, you should give them notice that they can:

1. Move out; or
2. Sign a new lease, pay market rate, and pay a security deposit equal to one month of rent.

That's it. Treat them like you would a new renter and start training them right. If you don't, you'll just inherit more problems down the road.