Hey y'all, I'm buying a 4-unit in Alabama and I'm in DC. I'm going to be inheriting 3-4 tenants and a maintenance man with the purchase. I have a property manager in place. If the inspection goes well I'm all in. I have a rental house but the multiunit is stepping out of my comfort zone, is a great way!
What is a good checklist of things I should know about the tenants and the maintenance man?
- Ask to see their applications and leases. You and your property manager need to know as much about your prospective tenants' background as possible.
- Ask the sellers for rent deposit statements for the past 2 years if possible. You will want to know if any of the tenants has ever paid late (and heaven forbid a pattern of late payments.... Get them out before you take possession!) This will only tell you anything if tenants paid by check or online, not if they paid cash. Then you only have the sellers' word! But whatever the method of payment, you want to check that the correct total rent amount was deposited every month. If not, ask why.
Maintenance man- Not sure about this one... Maybe get a price list, and ask your property manager to compare to market rates for the area. And a list of what things he has fixed over the years, so that if something goes wrong, your PM will know who to blame. :) J/K, but sometimes someone who has fixed something in the past is the best person to call because they know what is usually wrong with this or that, and can come jiggle it back to life (instead of paying a lot of money to a new maintenance person who will charge you just for finding and diagnosing the problem... And then to fix it!)
Patsy covered this well!
That was really good information Patsy thanks. I will send to my PM and the selling agent.
If you get a chance to speak with any of the tenants prior to purchase, I would simply ask them. They may have insider information about the other tenants that you would not find out otherwise. Asking how the other tenants in the building act paints you in a personable light and they may be more likely to spill the beans about the other tenants' good and/or bad behavior. Also the maintenance man probably knows a lot about the tenants and vice versa.
Oh that's right, they probably would tell on each other Jeff. I'm too far to get down there but I will see what my PM can do. He's already setup a meeting with the maintenance guy.
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