New Landlord Logistics Question

[Dennis Li]

Hi All! I'm in the process of completing my FIRST ever investment property transaction, very pumped that I will soon accomplish my goal for 2017, and join you fellow investors! A little bit background of what I am dealing with: I'm closing out this 5 units property with cash out refi, and expecting to close in a month or so. At the same time, all the units currently occupied, either by TAW or leased tenants. However, for leased tenants, their lease are all up in January. In this case, what should I do in terms of lease renewal since I won't be the owner till almost December which may be too late? Also, I may move in one of those TAW unit, would a 30 days notice suffice?

Secondly, at the time that I'm taking over the units, what sort of info I need from the seller to ensure a smooth operation? And what kind of insurance are recommended/ required for it? I'm a total newbie at this so any input will be appreciated!

[Andrew B.]

Since you did not screen any of the tenants, I suggest letting everybody go month to month, which should be standard with all the leases. This gives you more control over the situation. Double check all leases to make sure there isn't any automatic yearly renewal and make sure current owner knows not do sign any new leases, as they will transfer to you. Also, hopefully you have signed estoppel agreements so there is no arguments about sec deposit or rent amount.

Proper notice to move in will depend on your local laws. Many states require 30 days (full month cycle, not 30 days from notice given), but some require 60. If you have time, you can consider giving more to be nice, but try to aquaint yourself with the laws know so you don't run into issues down the line.

Congratulations on your purchase!