Inherited Tenant - Name Not on Active Lease

[Ken Midgett]

I recently acquired a 4-unit, and I've come across an issue.

I inherited tenants, and I have learned that a tenant living in one of the units is not named on the active lease that was conveyed to me. I tried reaching out the original lessee, but their phone has been disconnected and I cannot get a hold of them. The person that is currently living there said they cannot get a hold of them either (I'm guessing they used to be friends and are not now). The good news is that the person living there is easygoing and is willing to sign a lease. He has been paying rent to the previous owner on time, and everything.

BUT, what do I do about the existing active lease if I cannot get in contact with the individual? I have a security deposit that was conveyed to me that was submitted by the original lessee. In a perfect world, I would just do an add tenant addendum and have everyone sign, but I cannot locate the original lessee.

[Scott M.]

You said you "recently" acquired.  How recent?

You also said they easygoing and willing to sign a lease and paying rent to previous owner on time and everything.

This tells me you have zero direct experience with this tenant paying rent on time to you.  You are taking the word of the seller and some person you like on a personal level as they are easy going.  

Two thoughts.

1.  Fully qualify them like you would any other tenant.  I have a feeling you may not have a lot of experience with this given your description of this situation so if you are not sure how to quality a tenant properly look into that/ask questions etc.  For example, I would never say I want to sign a tenant because they are "easygoing".  

2.  I would put them on a month to month at most and see how it goes for 4-6 months before you lock yourself in longer term.