Whenever you buy a tenant occupied rental property there are challenges to be had. Most tenants, and I do mean at least 90%, are good and honest and ethical. They don’t lie about to whom the appliances belong and they don’t make up stories about how rent is paid in the past.
There are those tenants that just can’t seem to to wrap their head around “the right thing to do”. They will tell you the refrigerator belongs to them and that they paid the “other owner” rent already and that they had a larger deposit than they actually did. So it’s very important to you, the investment property buyer, to get all of these issued clarified during the escrow period if at all possible.
Here are some items I would include in my contract;
- Rent roll.
- Delinquency roll.
- List of Security Deposits.
- Personal Property inventory.
- Estoppel Certificate.
Make sure your would-be tenants don’t think they have one lease when you think the lease terms are different. A common problem during any investment property turnover.