Purchasing a Tenant-Occupied Property - Any advice?

[Julian McClean]

Hello - 

I'm purchasing a tenant-occupied property with an annual lease agreement in place. This is the first time I purchased an investment property with an existing tenant, so hoping this community of experts can help guide me.  Specifically I'm wondering:

1. Once the purchase is complete, would I create a new lease agreement between the tenant and me or do I need to just use the existing agreement (between the tenant and the seller)? 

2. Any advice/tips/best practices/watch out areas you can share as I embark on inheriting an existing tenant? 

Thanks in advance for the help!

Julian

[Will Gaston]

@Julian McClean In my market of South Carolina, the existing lease and terms have to be used by any new owners/tenants unless both parties agree to a new lease.

My experience in buying property with existing tenants has rarely gone well. Retraining them to how I do things has proved difficult. So much so that I usually end up having to provide notice and get a new tenant. 

My advice is to lower your expectations on how well it go. That's what I tell myself every time I get an inherited tenant. Unfortunately, I'm usually correct.