Collecting Rent Inherited Tenants

[Mike Vogt]

Hey, BP!

I am closing on a four unit investment property on March 31st (It's my second rental, still learning). All four units are currently occupied.  What's the best way to collect rent for April without any hiccups? I want to ensure a smooth transition between owners, but closing on the last day of the month seems a little tricky. 

Does anyone have any suggestions or advice for dealing with this situation?

Thanks!

[Mindy Jensen]

Have title hold the rent amount in escrow until you receive payment in full. So 4 units at $1,000 per month means a $1,000 holdback at closing until rents are sorted out. It's entirely possible that rents will either be late or sent to the current owner. 

Also, make sure to get signed Tenant Estoppel Statements that state how much rent is, how much credit (for mowing the lawn or whatever else), the amount of security deposit, etc.