Inherited Tenants, Want to Sign Them to New Lease

[David Johnson]

I purchased a 5 BD/2 BA property in Baltimore last August and inherited two tenants who have been living in the property as a rooming house. They each pay $350 and $380, respectively, and are left over from the previous owner. I don't have a lease with them (they've paid on time every month) and, as far as I'm aware, there isn't a written lease leftover from the previous owner (doesn't mean it doesn't exist, though). 

I'm about to have the lead certificate renewed and the rental certification completed after having done a number of improvements to the property and my question is this: is it possible for me to raise the rent (I'd be looking to raise it to something around $450)? Is there a risk of any legal issues because of the lack of lease or lack of rental certification? 

[Brian Adzadi]

@David Johnson

The point of a lease is not just a contract to tell the renter how much they will be paying per month. It turns the potential grey areas to black and white. For example, who is responsible for snow removal, you or the tenant, how long can they have a guest until the guest is considered a resident there and should also be paying rent, you encouraged the tenant to get renter's insurance because you will not be responsible for any damaged or stolen items, etc.

Remember you can write a lease for a month a month tenant, the lease just automatic renews when they pay rent. You can end the lease buy giving a 30 day notice.

So to answer your question, YES, there are legal issues that can make it hard to make judgment on because there is no lease to set rules and regulations.