Apartment Purchase Due Diligence Regarding Deposits

[Xavier Randall]

QUESTION....when considering to purchase an apartment building and reviewing the current lease agreements....is the seller to provide with the deposits they collected or is that a cost you taken on by you?

[Jeff Greenberg]

To add: The new owner takes over the leases and is bound by them. This includes the lease to the coin laundry company.  All lease should be reviewed as a part of the DD.  On one property we found that the cousin of the seller had a 5 year lease under market price and he was the maintenance man.  Taking on that lease could mean that you could fire him and still have him in the unit at below market rent.