Now that you’ve purchased a new investment property, you should think about getting a new lease agreement in place with the tenants who are occupying the property that you’ve acquired. There are several reasons to do this, and today we’re sharing them with you.
Know Your Occupants and Let Them Know You
One of the reasons you want a new lease is that you have to know who is living in your property. It’s possible that your tenants moved in years ago with kids, but those kids are now 18 years of age or older. Anyone who is 18 or over should be on the lease.
The tenants also need to know who the new property owner is. If you have a property management company, make sure the lease reflects that so your tenants know who to contact.
Amendments and Addendums to the Lease
With a new lease agreement, you also have the opportunity to make sure all the new addendums that were not in the previous lease get included in your rental agreement. These might include a lead-based paint addendum, a pet addendum, or a bed bug addendum.
If your lease is month-to-month, you might want to amend or change the terms of the agreement. For example, if the due date in the initial lease was the 15th, and you want your tenants to pay on the 1st of the month, you can include that in your new lease. It’s also important to be sure that all of the new laws going into effect are actually added into the lease agreement.
Setting Expectations with Your Tenants
The final reason to get a new lease is that you can set the expectations with your tenants. With a new lease in place, tenants will know what to expect from you as an owner, and what you’ll expect from them as residents.
We can provide a list of the addendums we use with our company in this area. Your city or region may have different requirements, so always talk with an attorney or a local property manager. For any questions, please contact us at New Bridge Management.