New investor seeking advice on property management...............

[Matt Robinson]

Hi all,

I will be closing on my first duplex in the coming weeks and am looking for some advice. My wife and I will be house hacking this property and will be managing the other apartment.

Currently the property is occupied on both sides and managed by a well known property management company.

We have given one tenant his 30 days notice who is happy to leave but we haven't yet contacted the tenant on the other side who has been there for three years that we wish to keep.

I have been told that the current property management company will need to transfer the existing security deposits over to us which makes sense. Will they also send the current lease agreements, condition reports, or any other information?

There is significant damage to the apartment which will be vacated. In this case, are we entitled to use the security deposit to make repairs?

The tenant that we wish to keep will be on a six month lease if they agree to it. Should we treat them as a brand new applicant and make them complete the application and screening process or just keep it to a minimum?

Thanks in advance

Matt. 

[Drew Sygit]

@Matt Robinson

1) Documents - you should have required these at the closing. Once closing is done, seller and PMC are not required to provide you with anything. They might still do it out of professionalism, but we would charge a fee for the time and effort.

2) Security Deposit - Why are you asking such a basic question, yet terminating the current PMC? That's like firing the pilt and kicking him out with a parachute, then asking someone how to fly the plane yourself.

3) Lease - Again, a basic question you should already know the answer to.

Highly recommend you buy and read some of the management books here on BiggerPockets. 

Of course, you can also keep doing it your way of learning on the fly and asking strangers for advice, hoping you don't make any critical mistakes.