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Updated about 2 years ago on . Most recent reply
Multifamily Unit Tenant Month-Month Contract
Hello, BP Family.
I just signed my purchase agreement to a multifamily unit in Los Angeles.
It's a four unit and 2 of the tenants are under month to month contract.
If I become the owner of this property will I be able to draw a leasing agreement with them?
They are both paying just a little under market value.
Thank you in advance.
**And if you have any good property management company, please let me know!
Most Popular Reply
First of all, Congrats! Thats huge! 2023 is off to a great start for you!
Secondly.. Yes, you can attempt to get them on leases (check with the city housing laws). The county of LA encompasses many other counties with different laws. But 99% of the time, you should be able to get them on a lease. I had to do something similar.
I had a duplex that I purchased with tenants in each unit already. Both of them had been there for nearly 20 years. I asked them both to sign a lease and said I would not raise the rent for the one year lease. One declined and one signed. I evicted the tenant who declined, and it took many months because eviction is very difficult. Try to incentive them somehow. Most tenants would love to hear that the rent will not go up with the new lease, but I understand you may not be able to promise that. Get creative with what you can offer, maybe a storage unit on your property is vacant and you can offer to add it to the lease for free for the first year, or an additional parking spot, etc.
I've had to get creative this way many times so it's kind of fun to figure the game out! Feel free to reach out to me if you have more questions. I'm based in Los Angeles also :D
Secondly.. Yes, you can attempt to get them on leases (check with the city housing laws). The county of LA encompasses many other counties with different laws. But 99% of the time, you should be able to get them on a lease. I had to do something similar.
I had a duplex that I purchased with tenants in each unit already. Both of them had been there for nearly 20 years. I asked them both to sign a lease and said I would not raise the rent for the one year lease. One declined and one signed. I evicted the tenant who declined, and it took many months because eviction is very difficult. Try to incentive them somehow. Most tenants would love to hear that the rent will not go up with the new lease, but I understand you may not be able to promise that. Get creative with what you can offer, maybe a storage unit on your property is vacant and you can offer to add it to the lease for free for the first year, or an additional parking spot, etc.
I've had to get creative this way many times so it's kind of fun to figure the game out! Feel free to reach out to me if you have more questions. I'm based in Los Angeles also :D