All Forum Posts by: Robert F.

Hello,

I closed on a property on June 28 with tenants in place. Fortunately, the tenants that were occupying the unit I am moving into decided to move out before July 1. This has allowed me to complete renovations before moving in. 

The tenants in the other unit have a lease that says they get 90 days' notice, which was June 7 from the previous landlord. I gave them the option to stay at an increased rent amount starting September 1- just shy of 90 days. They verbally accepted.

I am at the point now where I've asked them to complete a credit/background check. I would like to have them sign a lease asap. Does anyone have a suggestion as to how I should proceed/ how much time I should give them to “apply” before I provide them with a new lease to sign? They aren't super communicative, and I’d like to get a leased signed for September 1 asap.

Quote from @Chris Seveney:

Quote from @Robert F.:

I will be closing on my first duplex at the end of this month. 

Tenants are in both units. Rents are too low. I plan on raising rent for upstairs unit from 750-1000. I've done my research and feel that this is slightly below market price.

I plan to move into downstairs unit once I can get current tenants out. 

Both leases are at the end of their term. The seller/ current landlord has already given notice that they will be approached with new leases upon sale of the property.  However, both leases say they require 90 days notice- see below

Again, I’d like to get the downstairs tenants out asap and raise the rent upstairs asap as well. 

I’ve gotten some opinions already about the 90 days notice , but I am curious to hear what the big pockets experts think. Do I have to give downstairs tenants 90 days to leave and upstairs tenants 90 days at their old rate until I propose an increase?

 yes you need to give 90 days. why not have the current owner provide the notice now?

Chris, 

Couple of follow-ups. Thanks for your response.

If current owner has no security deposits in escrow am I allowed to require deposits or renters insurance upon closing the sale?

are there any other steps that anyone recommend I take upon closing to cover myself?? 

Quote from @Theresa Harris:

Based on the lease you provided, they need 90 days' notice.  Has the tenant indicated if they want to renew or not?

 Haven't communicated directly with tenants myself. Waiting for appraisal and mortgage before I have a conversation with them. 

Quote from @Chris Seveney:

Quote from @Robert F.:

I will be closing on my first duplex at the end of this month. 

Tenants are in both units. Rents are too low. I plan on raising rent for upstairs unit from 750-1000. I've done my research and feel that this is slightly below market price.

I plan to move into downstairs unit once I can get current tenants out. 

Both leases are at the end of their term. The seller/ current landlord has already given notice that they will be approached with new leases upon sale of the property.  However, both leases say they require 90 days notice- see below

Again, I’d like to get the downstairs tenants out asap and raise the rent upstairs asap as well. 

I’ve gotten some opinions already about the 90 days notice , but I am curious to hear what the big pockets experts think. Do I have to give downstairs tenants 90 days to leave and upstairs tenants 90 days at their old rate until I propose an increase?

 yes you need to give 90 days. why not have the current owner provide the notice now?

Yes current owner has given notice

I will be closing on my first duplex at the end of this month. 

Tenants are in both units. Rents are too low. I plan on raising rent for upstairs unit from 750-1000. I've done my research and feel that this is slightly below market price.

I plan to move into downstairs unit once I can get current tenants out. 

Both leases are at the end of their term. The seller/ current landlord has already given notice that they will be approached with new leases upon sale of the property.  However, both leases say they require 90 days notice- see below

Again, I’d like to get the downstairs tenants out asap and raise the rent upstairs asap as well. 

I’ve gotten some opinions already about the 90 days notice , but I am curious to hear what the big pockets experts think. Do I have to give downstairs tenants 90 days to leave and upstairs tenants 90 days at their old rate until I propose an increase?

Quote from @Joe Norman:

Yes, I think you're being a little unreasonable. If you have a repair agreement in place then you need to trust that the seller will get it done and order your appraisal. As Russel stated above, if you do not then you could be the one at risk of defaulting.

Thanks Joe. I appreciate your honesty!!

I am under contract to buy

Offer was made with inspection contingency 

Seller agreed to repair or replace furnace a week ago

I asked my realtor to check on the progress of seller and they have no real news for me a week later, other than an HVAC guy was on property- per sellers realtor

My loan is conditionally approved pending appraisal

I told my realtor I’m not ordering the appraisal until I am satisfied with the progress being made to fix/ replace furnac

Is that unreasonable? My realtor seemed a little miffed, but I have 17 days to get the appraisal done before closing and my MLO is confident we can get it done in time

Thank you all for the great input!

Quote from @Owen Rosen:

Quote from @Robert F.:

I am a first-time home buyer. The property is a duplex and it will be my primary residence once tenants clear out. The current landlord is giving lease termination notice before I close I plan to rent the upstairs apartment to current or new tenant.

Do I need an umbrella policy or will homeowners insurance be sufficient? Also, is there any reason I would need to establish an LLC?

If there are any PA brokers looking for business, please message me. I would love to have a conversation about my situation to ensure I’m adequately covered but not paying for anything unnecessary.

Thanks in advance!

It depends on what kind of assets you have to protect.

I guess my only assets would be retirement accounts, my car, and my golf clubs 🤣

Is that what you mean?? My total net worth is about 80k.

My realtor mentionedan umbrella policy so I’m trying to understand why or when that type of policy makes sense