Section 8 Deposits & Last Funds Collection

[Taoufik K.]

Purchasing triple decker in Boston MA, I'm wondering how can i handle the deposits/lasts funds that are maybe held by the current owner for Section8 owner?  In other words, if the current owner claims he never collected last+deposits, and at the closing day he does not transfer them, then, i may have to end up paying a tenant when he is leaving an apartment for something i never collected/held.

Is there a way how to check on this before closing, please?

FYI: All tenants are S8/BHA (Boston Housing Authority)

Thanks

[Nathan Gesner]

@Taoufik K. as far as I know, Section 8 renters are required by law to have a written lease agreement that includes the rent and security deposit. During your inspection phase, you should have reviewed all documents, tenant payment ledger, etc. This document would hold the answer.

Regardless, you should definitely use an Estoppel Certificate (or Letter). It's a pretty simple form that confirms information necessary for you to transfer ownership and continue managing that tenant. As @Randall Brown pointed out, it should include:

• Name of all residents in the unit
• Current contact information
• Unit address
• Original lease start date
• Lease expiration
• Monthly rent rate
• Last rent payment covering the period of (date) to (date)
• Security deposit? Last month's rent? If so, list exact amounts
• If no written lease, have tenant initial they are on a verbal month-to-month
• List any verbal or written agreements between tenant(s) and Landlord not included in the lease (e.g. Landlord promised to let tenant paint the living room Hunter Green)

This document should be signed by the tenant, then the Landlord, then you. Without this document, it's very easy to get into an argument or legal battle after purchase.