Renew or Not to Renew a Lease

I would like to know how you seasoned investors deal with current tenants when you purchase a property. This of course would refer to tenants that have a month-to-month or their lease will be up shortly after purchase.

Do you clean house and remove all current tenants? or
Do you just have them complete a new application and perform a background check before making that decision?


I get copies of (or look at) the previous owner’s file on each tenant BEFORE I buy a property. I want to see who I’m inheriting and what the lease terms are. I insist on copies of the leases for each tenant. Remember, you are bound by any existing leases, even if they say the tenant is to pay rent of $50 per month for the next 100 years! I check the criminal background of each tenant. The result can determine whether I will buy the property and how much I’ll pay.

After I buy a building, I certainly don’t kick out paying tenants that aren’t causing trouble. Yes, have them fill out an application; complete your other paperwork; and sign your lease (even for month-to-month tenants).


on a month to month lease do you just have the tenants sign the lease and have the lease say this is month to month lease until either party gives 30 day notice. or do you have them sign a new one every month. thanks


When are you saying that you perform the background check? When your in your inspection period?

Do you find that most of the landlords you purchase from have good enough records that you can tell if a tenant is a good tenant (pays on time and not a trouble maker)? I am asking about non judical offences that a landlord would try to handle themselves or cover-up.


The answer depends on your state law and the language in your lease. Most leases say that once the initial lease period is up, the lease automatically reverts to a month to month lease. Therefore, I have the tenants sign a lease with an initial term of 1 month.