Taking Over Tenant Leases
Hi everyone, I am purchasing a 4 unit property from a property manager/realtor that has been managing one of my other rental properties for me. His father owns the property and he currently manages it for him. His dad is starting to liquidate some of his properties and he reached out to me to see if it would be something I would be interested in purchasing. After walking the property and getting an appraisal done, we have agreed on a purchase price and I am moving forward with a contract. The building is currently fully occupied with leases signed through June/July of 2019. My question is this....
What if any conditions of the purchase offer should I be listing in order to better protect myself from potential issues with transfer of the leases into my companies name? I am definitely going to have my attorney review the contract before it goes out, but I am making a first pass on it before I send it to him for review. I am sure a lot of people on here have experience with taking over distressed properties with bad tenants. I don't think that is the case in this transaction given that he uses the same rental criteria for pre-approval he uses on my other property. All the units looked good and were clean and kept up when I walked them. The appraiser had similar comments.
Any suggestions?