Wilmington , DE · Member since 2015 · 35 posts · 3 votes
Let's say you bought a quad with 4 active leases; upon the sale of units the deposit money was not given back to the tenants. How in the world do you go back to the tenants and create new leases and ask for a security deposit?
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
11y
You don't.
The deposit money should have been transferred to the now owner from the previous owner at settlement, usually as a credit off the sale price.
Based on other related threads it seems like some unscrupulous sellers are getting away without doing this when the buyers don't know to ask.
Best of luck. I hope you're not too late.
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
In some states you have 45 days to pay them back. You could rehab/rent the unit and use the next guys security deposit to pay back the last. (Not a great idea) If you know this is coming up in advance set aside $ from each cashflow check to pay it back.