Reviewing lease on a purchase with a tenant in place

General Landlording & Rental Properties
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Reviewing lease on a purchase with a tenant in place

Shaun R.
Real Estate Agent · Denham Springs, LA · Member since 2017 · 226 posts · 159 votes

I submitted an offer on a rental property last night that already has a tenant in place.  This morning the question hit me... should I have included in the offer that I get to review the lease of the current tenant, or is it standard practice that you should be able to review a lease that is in place?  I would assume it's standard practice, but I don't have any experience with this.

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Kim Meredith HamptonBusiness Member
Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
8y

Shaun,

I would send a separate email that you would like a copy of the lease agreement during due diligence, and you will also want an estoppel letter from the tenant confirming that the information provided (lease) is true and correct

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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    8y

    Shaun,

    I would send a separate email that you would like a copy of the lease agreement during due diligence, and you will also want an estoppel letter from the tenant confirming that the information provided (lease) is true and correct

    [email protected]407-448-6679Podcast Guest on Show The Key to Scoring Discounted Deals in One of America’s Hottest Markets
    Compass | St. Pete514 Reviews
    WebsiteView Page
    2Reply
  • Joseph Cuomo
    Specialist · New York, NY · Member since 2016 · 25 posts · 3 votes
    8y
    I don't have experience with rentals yet, but I will say that nothing should be assumed. Ask as many questions as possible. No question is a dumb question.
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  • Deanna McCormick
    Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    8y

    I take it a realtor isn't helping you out.. with a PA purchase agreement,, you request more than just seeing the tenant's lease.. you should want the last 2 years of tax documents showing income and expense report on this rental property, rent roll, copy of lease,amount of security deposit, and of course to view property condition. your Due diligence period to inspect and verify what seller has represented is now up to you to verify and confirm and ask for corrections in within you inspection period. 

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