What info do I need from the seller of a 1-4 unit rental property?

1 Reply

So far this is the list I have come up with. Is there anything else I need from them?

Tenet history/rental agreements for all units going back preferably 5 years.

Rent rates for all units going back preferably 5 years.

List of repairs and updates, with costs if available, going back preferably 10 years.

Property operating costs preferably going back 10 years.

Reason as to why seller is selling.

Known construction issues that need to be addressed regardless if minor or major.

If property is paid off and, if not, how much is still owed as well as if there are any liens against it.

If seller is on a time table for when they would like to be rid of the property.

I would like to see the sellers schedule E tax form prior to closing.

Originally posted by @Mason V. :

So far this is the list I have come up with. Is there anything else I need from them?

Tenet history/rental agreements for all units going back preferably 5 years.

You can expect copies of rental agreements for current tenants but why would you want past tenants? They may no longer exist but are useless

Rent rates for all units going back preferably 5 years.

Not something you should expect

List of repairs and updates, with costs if available, going back preferably 10 years.

List of Major improvements completed but not likely going to get costs nor are they relevant

Property operating costs preferably going back 10 years.

You should expect two years

Reason as to why seller is selling.

Reasonable but not really important

You're really asking for a lot of information. As a landlord I wouldn't be interested in hunting through old files to gather this much info. Rental agreements, a couple years opex and a list of major capital improvements and deferred improvements is important. Lead paint? Any ongoing evictions? Do a home inspection and you should be good to go. 

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