Purchasing a Tenant occupied Rental property? Aim for Middle of the month if possible

[Alan Asriants]

If you’re considering making an offer on a property with tenants you’ll be inheriting, it’s a smart move to set your closing date for the middle of the month. This advice applies mostly to 1–4 unit properties; larger commercial multifamily deals usually have more moving parts, and tenants there are less likely to all be on first-of-the-month leases.

So why aim for mid-month? Most leases run from the first of the month, with rent due on the 1st. When you close in the middle of the month, the rent collected at the beginning of that month is prorated to you on the settlement sheet. That timing also gives you the rest of the month to properly introduce yourself to the tenants as the new landlord and coordinate how rent will be paid for the following month. By contrast, closing on the 1st or the 30th/31st can create awkward first interactions—you’re brand new to them and immediately discussing payment. That’s not always the best way to start the relationship. To be fair, experienced investors handle this all the time and can set expectations from day one, but mid-month timing makes it easier.

Beyond avoiding an awkward intro, mid-month closings also help with the seller dynamic. If you close on the 30th/31st or the 1st, the seller can claim they haven’t received the month’s rent yet. Many leases include a five-day grace period, so end-of-month or first-day closings invite finger-pointing about who should chase rent. Closing mid-month removes that variable; if rent still hasn’t been paid and the seller wants you to go collect it, you have firmer ground—payment should have been made much earlier in the month.

Of course, in a competitive market you won’t always land your ideal date. But for tenant-occupied properties with first-of-the-month rent cycles, it’s generally best to target a closing somewhere around the 6th–25th.