I have a question for all. I just bought a multi family property last month but it is seller financed. As the new month rolls in. Old owner messages me that a tenant is missing rent for the last month and wants to know if they paid me for anything. I asked the tenant and they said they already paid the old owner.
Now this feels shady to me that the old owner is asking me for last months rent when nothing was mentioned at closing about missing rents. Old owner tells me that i already got paid October rent upon closing.
What should i do guys? The tenant is getting agitated that she is hounded about rent that is paid. She showed me some text screenshots of the previous owner and her talking about paying the rent but was not able to provide proof of receipt.
Im getting the feeling that i should start refinancing ASAP
look,at contracts you signed with seller. Look at leases with tenants. Document when you should be paid as "first month" under your ownership. If you have been shorted by seller, show him. If he agrees, he should pay you. If he doesn't, you'll need to forgive it or hire a tough lawyer. Good luck.
It should have been spelled out at closing. Security deposits should have transferred to you and you collect rent from day of ownership forward. Seller is responsible to collect back rent from tenant prior to closing when he owned the building. Unless you received it by mistake, you don't pay him back rent from before the closing date, he gets it from the tenant. Something's fishy here if she can't provide proof of payment, don't get involved in their dispute.
@Kris Jumao-as I agree with what others have said. This should have been adjusted at closing. Don't get involved in this, let the old owner and the tenant hash it out.
Should be in your closing documents. Rents should have been prorated as to date, when you took over ownership and security deposits also should have been accounted for and those funds adjusted at closing to cover those amounts.
I would immediately give each tenant notice that rents are due to you ONLY from this date of ownership on and that YOU are the new owner.
Any prior claim seller had are really done with at closing.
Just because it's seller financed doesn't mean he's entitled to back rent owed unless it was in closing documents. that should have all been cleared up prior to closing.
It is my belief, If he had a written agreement with the tenant for back rent owed you are not involved. If he wants to collect on debt from that tenant he can go to small claims court with her over that. He can't file eviction or take any other action against your tenant now.
Your responsibility starts with date you took over get new current lease updated with all and contact info to all tenants ASAP.
Thank you all for the replies. Here's what happened:
I checked the closing documents and it was true that i was given Oct rents prorated but i told the old owner that i am not meddling between her and the tenant regarding October back rent. She said ok and that was that.
Perfect, For those that gave or responded with information you found useful Post a Vote :)
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