All Forum Posts by: Web A.

Hey BP! I live in north NJ and i just closed on a duplex property which I plan to house hack. I inherited tenants who’s lease ends in August 2020. What are some of the first steps you recommend I take with this tenant ( Go over current lease, security deposit, etc?)

@Carl Millsap @@Scott Wolf

This is both valuable advice. I think the deal is worth inheriting the tenants for at least the next 10 months. In new jersey the tenant Landlord laws are more in favor for the tenants but since it’s a rental less than 3 units there are exceptions that aid new landlords. Threatening tenants with an eviction prior to their lease completing may actually do more harm than good in this case.

@Ola Dantis

This is a good way to approach this from a different angle. I don’t for see these tenant wanting to break their lease since this is one of the better sections of the city and the fact they are paying $400 less.

I was hoping to have a casual but formal conversation informing the tenants after 6 months that the lease will be altered with the following changes such as ( rent increase ) In order to be transparent with them and increase a smoother transition for them to leave once their lease finalizes.

@Jill F.

Great feedback. Thank you!

@Jill F.

Great advice. What would be an example of them breaking the lease which would prompt them to sign my new lease?

@Robert Biggerstaff

My instant thought is the owners are motivated to recently have signed the lease with these tenants for under market value and requesting a fast closing under 30 days. So i will definitely ask for the demographic/ background info on the tenants as a contingency before we finalize the contract.

@Carl Millsap

Asking for those reports are exactly what i was thinking about aswell. My fear is seeing information of a tenant that 1) doesn’t meet my standard of income requirements 2) has had past evictions 3) bad credit. Do I still buy the property and just bite the 11 months of having bad tenants or do i pass.

@Solomon Morris

This was very helpful. I will start seeking Property managers in my area. I’m trying to avoid the more costly route in hiring an attorney so this helps

Hey BP. I’m considering purchasing a duplex that currently has tenants that recently signed a 1Year lease ( Ending in 1/2021). The current tenants are paying $400 below market value. I’ve never inherited tenants before. Am I obligated to honor that lease and keep them as tenants for the next 11 months.

Would I be able to change the terms of the current lease? Am i able to have them sign a new lease with myself with new rent prices? Is it customary to request background info, credit checks, past evictions, etc of the tenants before I buy this property.

What are your thoughts BP? 💭

@Eddie T.

Contacted Wells Fargo last week and was only able to get a raise of an additional $5,000 LOC