What information should I seek when inheriting tenants?

Question

When considering submitting an offer on a property which is at least partially rented (in other words, you would be inheriting tenants), what information/documentation is reasonable for me to request from the seller?  Should I be able to ask for a copy of the tenants' current rental agreement, property expense history, etc.?  What information would ask for to fully vet the property?

Thomas S. · Answer

Require a esstopal letter signed by both tenants and landlord. It will include all pertinent information, rent, deposits, special considerations, term of lease etc.

Marc Winter · Answer

All above is good advice.  One other issue to address--utilities.  Verify who pays for what, and if tenant is responsible, verify that the account is in their name.  Additionally, make sure that any lien-able service (in my area that would be trash and sewer) remains in the owner's name, otherwise a tenant can skip paying for that service, and you, the owner, will be struck with the bill when they leave.

Jason Unrath · Answer

Thanks everyone!  This is all really great advice.

James Thomas Nakashian · Answer

@Jason Unrath What @Marc Winter and @Thomas S. said are true and great advice its what I would do as well. Another thing you can do to take it step further and what I may do if I don't know the owner or anything like that is a background check as well to cover all you bases.

Billy Smith · Answer

I just inherited tenants while back. You will need to see old lease to look at deposit, rent, when is rent collected. If the old owner collected deposit you will need to collect the deposit from  old owner.

With the old lease I had no deposit collected so I obtained one.

I also had to raise the rent the old number was based on the value from 5 years back, prices have gone up sharply since then.

You need to do a walk thought inspect what is going on, do they have pets are they smoking etc.…

With the walk through what is in need of attention, old wiring, plumbing etc.…

I had it easy I managed the property so I had details of the house and tenants.

As soon as you take possession  you need a new lease.

What information should I seek when inheriting tenants?

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