I am purchasing 7 units, 6 currently have tenants. How do I protect myself from tenant damages when they move out? For example, one home has a broken window. The current owner says the current tenant must have done that and that I should take it out of the security deposit when the tenant moves out. How do I avoid having the tenant say it was like that before they moved in?
This is why you conduct move in and move out inspections with the tenant present. It may be tough to do with inherited tenants because you weren't there when they moved in but this is a good way to handle it going forward
For the broken window I would eat it. Unless you have evidence it was broken by the tenant the court will side against you if it goes that far.
I should have clarified my wording a little better. We own other rental homes. We always do inspections at move in/out. This is our first time purchasing with tenants. I didn't know if there was a form, similar to an estoppel signed by both parties, we could have completed related to any damages the current owner sees that were not there when the tenant moved in.
if current owner has a detailed move in inspection, then I would go based off that. Any grey areas between move in and current condition, I would eat the cost. When you take possession, take a detailed inspection and photos and any damages between now and move-out can be taken from security.
You can have it filled out on tenant estoppel forms I believe but only if everyone agrees which it appears they don't.