To want tenants, or not to want tenants

[adamturner]

As investors, do you prefer to take possesion of of a new rental with or without tenants already in place.

What are the pros and cons of both situations.

What should we be looking out for.

Cheers
Adam Turner

 

[invst4profit]

Without tenants.
Landlords selling a property may allow tenants in, to fill a building, without proper screening. Other landlords have no idea how to screen and may in fact be selling because they are having a bad experience with tenants.
As a investor you put a lot of time and hard work into making the proper deal and in order to be as stress free as possible you need to be very selective in choosing who is going to live in that investment.
To be honest some landlords do not have a clue and simply take the first applicant with a heart beat.

 

[OlegP]

QUOTE (adamturner @ May 19 2009, 03:37 PM) As investors, do you prefer to take possesion of of a new rental with or without tenants already in place.

What are the pros and cons of both situations.

What should we be looking out for.

Cheers
Adam Turner

In Ontario, at least, you may have no choice. Legally, you can ask for a vacant possession only if you and/or your family are moving in. Otherwise you are stuck with the tenants and their existing leases.

However, it may not be a bad thing. Depends on how good the current landlord is. If tenants are strong, and pay market rents, then you just saved yourself the trouble of having to advertise, do the showings, and possibly run the property partially vacant until you find a good tenant.

 

[terri]

QUOTE (adamturner @ May 19 2009, 02:37 PM) As investors, do you prefer to take possesion of of a new rental with or without tenants already in place.

What are the pros and cons of both situations.

What should we be looking out for.

Cheers
Adam Turner

I always prefer to select my own tenants. The only time I could see an advantage to inheriting tenants is if you needed the income to qualify for the mortgage, but even then , the bank will allow market rent, so I have to say far and away vacant possession so I can pick my own.

Terri

 

[BrianPersaud]

QUOTE (adamturner @ May 19 2009, 05:37 PM) As investors, do you prefer to take possesion of of a new rental with or without tenants already in place.

What are the pros and cons of both situations.

What should we be looking out for.

Cheers
Adam Turner

Well its now a fresh start for the tenants. You can be like Brian Burke, set the tone, and see how your team can turn it around. GO LEAFS...in 2012!

I would start out setting the tone in the relationship of what you expect, and consistently give the same message to them...You are professional property manager. I`m sure you will create a winning team on Day 1 and not in 2012.

I`ve seen tenants who appreciate that people see them as partners and will work hard to keep their good reputation with me.

Check out this post on how to set the tone.