Buying Already Occupied Building

[Tom Scott]

I'm looking at a few 4-plex buildings and most already have long term tenants. I know I need to look at the lease agreements before I buy, but what else do you do in order ensure an easy transition for the tenant? How are the tenants various security deposits usually handled as ownership transitions? How do you handle migrating the tenants over to the new payment system (if applicable)? What else should one look out for when buying an occupied building? 

Tom

[Patrick L.]

You will want to get a signed estoppel letter from each tenant confirming their lease terms  (due date, payment amount, and security deposit.  The security deposits and any prepaid rents would be transferred to you at closing.  Once you close you can send an introduction letter to the tenants with payment instructions and any phone number contacts for issues, maintenance, etc.