Do I need to get a new lease in my name for existing tenant

[Calvin Rappard]

I just bought my first rental property in the Chicago area northwest suburbs (Cook county). The current tenants have a lease until end of January, which I will honor. In the closing docs, there was a document that signed over the rights of the current lease to me. Should I still do some sort of addendum to the existing lease to have it in my name, or am I okay to leave until renewal in January? (Existing tenants intend to stay on.)

[Paul De Luca]

@Calvin Rappard

The existing leases you inherit are binding so there's no need to modify that to have your name on it. For the lease renewal of course you'll want your name on it.

[Connor Hibbs]

The existing leases should be fine, but when you renew, you'll want to be sure that your name or business entity is the Landlord on the lease. I'd recommend going with your LLC/ entity as you'd need it changed to that should you want to refinance under your entity name in the future.

[Jonathan Klemm]

Hey there @Calvin Rappard - Congrats on your first purchase and welcome to the Chicago BiggerPockets community!

Can you share some details on the deal...Which Chicago Suburb is the property in?  What was the purchase price?  Current rent?

As @Paul De Luca mentioned, no modification is needed.  I would provide notice that ownership has changed and ensure they understand the payment process and expectations.

[Calvin Rappard]

@Jonathan Klemm the property is in Schaumburg, 2 bed 1.1 bath, attached garage. Purchased for $230k with 25% down. Rent is $1,725 with existing tenant, a little under market so scope to increase in future, especially if I do a cosmetic update. Comps in area go up to $2,200 for fully renovated units. 

Breaking even after mortgage, taxes, HOA, so not getting capex etc. on top right now. But as my first one I learnt a lot doing this deal so hoping to use that for future deals.

[Jonathan Klemm]

Love it @Calvin Rappard!  Learning & experience is the name of the game getting started!  That new part of Chicago near Schaumburg is great...I am pretty familiar with it because I am originally from Elgin.

I know personally that I create undesired stress by taking on too much too fast. Being aware of not biting off too much at one time is a skill, and it seems you have it.

Real estate is all about incremental wins and, maybe most importantly, staying sane and JOYFUL while doing it!

Any target date out there to get the next deal?