Tenant Occupied Property

[Dwayne George]

Quick question from an investor just starting out... I'm excited about my first property!  I'm purchasing a rental home in Wilson that already has a tenant in place.  Should I collect a security deposit, and upfront payment even though I'm sure he did that with the previous landlord?  How does that work? Thanks for any comments!

[Steve Combs]

The security deposit and last month's rent, if paid up front, should transfer to you. When the tenant leaves you will have to return the security deposit less any charges. If you don't get the deposit from the previous owner you will have to pay it out of your pocket. If the tenant paid his last month's rent up front, he is not going to be paying you his last month, so you should get that from the seller to.