Inheriting tenants for the first time

[Lauren Rowe]

I just closed on a quadplex this week and this is the first property that I have inherited tenants. We usually buy vacant fix it up then rent it out. I’ve obviously done my research on what needs to be done when inheriting tenants but I’m wondering if there’s anything I should know that you’ve learned from experience? One thing that I wasn’t able to figure out is with security deposits I don’t know what condition it was in when they moved in. So when they move out how would I know if they get it back or not? We have a move out in May. 

[Richard F.]

Absent any useful documentation, such as a Move in Condition checklist, Courts make the assumption that the unit is in the same condition now as then. You get to return it all to the Tenants. Even trying to deduct for cleaning will be difficult to prove, unless they leave the unit littered with rubbish or serious filth. Were the Security Deposits transferred to you at closing? Do you know, based on existing written Rental Agreements or Estoppel Certificates who they belong to?