Conveying Security System
I just closed on a property, and the seller let me know that a security system exists at the property. It sounds like the cost of this was billed to the seller, and the tenants were reimbursing the seller each month. However, the payment for the security deposit is not on the lease. The seller would like to transfer the security system to me. I would not like to take this system on, but it would be nice for the tenants to be able to use it. I'm concerned the security system company may bill to the property rather than the seller, which could cause an outstanding debt payment that I wouldn't know about. A couple of options I've considered are:
1. Let the tenants know they can transfer the system into their name if they'd like
2. Do nothing
Has anybody had a similar situation? How did you handle it?
Hey @Isaac Hayes I have seen two opposing systems work well, but they both work.
1) to your point #1 you can simply say that if the tenants want the system they can pay for it. Thats probably the easiest and cleanest way to do it.
2) On the opposite side is what I personally do at my properties. I charge a premium for my properties and I include Ring security and cameras in the rent on the property. I find that offering this as an added perc/bonus helps me keep long term solid tenants. I retain ownership of all of those products and those services, I just billed the cost into the rent and I am able to add the tenants as users in the app. So they can get full use and access to the system, but I retain ownership.
Both work well, and I'm happy to share details on my system if you are interested.
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Real Estate Agent OHIO (#2021002058)
- 614-362-2231
- [email protected]
Quote from @Isaac Hayes:
I just closed on a property, and the seller let me know that a security system exists at the property. It sounds like the cost of this was billed to the seller, and the tenants were reimbursing the seller each month. However, the payment for the security deposit is not on the lease. The seller would like to transfer the security system to me. I would not like to take this system on, but it would be nice for the tenants to be able to use it. I'm concerned the security system company may bill to the property rather than the seller, which could cause an outstanding debt payment that I wouldn't know about. A couple of options I've considered are:
1. Let the tenants know they can transfer the system into their name if they'd like
2. Do nothing
Has anybody had a similar situation? How did you handle it?
I would give your tenant the option to take over the system and if not I would call the system and just cancel it. I do that with my utilities.
