Flipper/Rehabber · Denver, CO · Member since 2016 · 56 posts · 21 votes
Hi everyone,
I am about to pick up a triplex and am about to close... The seller who is not well organized said they usually collect rents on the 5th (usually).. i close on the third of this month and had some questions about best practice...
I told them that they should collect the rents that are due on the 1st and prorate the rents for the first couple days and deposit the residual rent into an escrow account...
They want me to collect the rents but I don't think this is a great idea...
Any thoughts on this one?
Also, one of the tenants has 4 small dogs... The previous owner just let them have them without any pet addendum or collecting a security deposit...
What would peoples approach be for this? I was thinking keep the tenants and pet and apply a security deposit when I have them re-sign the lease.
Boston, MA · Member since 2008 · 149 posts · 57 votes
6y
So they are giving you the entire months rent rather than collect? Sounds to me like these might be difficult tenants that don't pay on time or regularly. Anything collected after closing is yours, so I would insist that you keep the 5 days of rent and not have to give it to the seller after closing.
You need to establish on the first day you own the property that they need NEW leases and deposits, that the pets are not ok (or are with a fee if you want), and be strict. Do they even have leases now? The 5th seems like they are a lazy landlord!