How I helped a repeat investor buy an occupied three-family in Uxbridge and keep the tenants he wanted

The deal, in six lines.

Client

A repeat client and investor

Situation

Buying a three-family with existing tenants he wanted to keep at their current rents

Location

Uxbridge, MA

Property

Three-family, tenants in place, priced in the $600Ks

Timeline

Closed April 9, 2026; lease renewals prepared for the following year in September 2026

Result

Closed on the building, kept the existing tenants, renewed their leases, and started filling the one unit that turned over

This client had bought with us before. He wasn't looking for a project. He wanted a three-family in Central Massachusetts with tenants already paying rent, and he liked the tenants who were there.

Buying a building with tenants in place is really two transactions: the real estate and the leases. The first ends at closing. The second is where new owners get surprised.

What's different about buying with tenants in place?

You're not only buying a building. You're stepping into agreements someone else signed.

Before closing, the questions are about the leases themselves:

• What does each lease say about rent, term, and who pays which utilities?
• When does each lease end, and what happens after that?
• Were security deposits collected, how much, and where are they held?
• Are there last month's rent payments that need to transfer too?
• Does the property meet lead paint requirements for a building with rental units, especially if children under six live there?

Those answers affect the numbers as much as the price does. A unit rented well below market, or a deposit nobody can account for, is part of what you're buying.

What did we handle after closing?

Most of the work came months after closing.

Lease renewals. The existing leases ran through the end of the rental year. The owner wanted to keep the same tenants at the same rents. We prepared renewals for the following year that mirrored the existing, active leases: same terms, new dates. Then we collected current contact information from each tenant so they could sign electronically.

Security deposits. At closing, the deposits the previous owner had collected transferred to the new owner. That transfer comes with obligations. In Massachusetts, a landlord has to hold tenant security deposits in a separate, interest-bearing account, not mixed with operating money, and the rules on receipts and interest are strict. We flagged it and recommended he set up the account promptly, and confirm the amounts with the attorney who handled the closing.

A turnover. One tenant moved out at the end of the lease. We were already working with a strong applicant who wanted to move in before the first of the next month.

What should someone else in this situation know?

• Read every lease before you commit. The leases are part of the price.
• Get the deposit trail in writing. Know who collected what, and confirm it transferred at closing.
• Handle deposits exactly as the law requires. Massachusetts security deposit rules are strict, and mistakes can be costly for landlords.
• Keep the tenants who pay. A good existing tenant at a fair rent is often worth more than the extra rent a turnover might bring.
• Plan for turnover anyway. Even in a stable building, someone eventually moves out.

Questions people actually ask.

What happens to leases when you buy a rental property in Massachusetts?

Existing leases generally stay in effect after a sale, and the new owner takes over as landlord under their terms. Tenants at will are handled differently from tenants with a lease. Have your attorney review every lease before the purchase and sale agreement.

Do security deposits transfer to the new owner?

They should. The new owner becomes responsible for them, so the transfer needs to be documented at closing. Confirm the amounts with the closing attorney.

Where do I have to keep a tenant's security deposit in Massachusetts?

In a separate, interest-bearing account in a Massachusetts bank, not mixed with your own money. The tenant is also owed specific receipts and interest. The rules are strict, so check the current requirements with an attorney.

Can I raise the rent when I buy a building with tenants?

Not during an existing lease term, unless the lease allows it. At renewal you can negotiate new terms. Many owners, like this one, keep good tenants at their current rent because stability is worth it.

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Client details are shared in general terms to protect their privacy. Prices and dates come from the transaction file and public MLS records. Past results don't predict the outcome of a different property, market, or timeline.