I am looking to pick up my first duplex. Both sides are currently rented out and I was told the rent was the following.
Unit A) 850/month
Unit B) 800/month
However, this seems high to me based on the area. Not saying it is not possible, but my first impression is something like the following. ($100 difference)
Unit A) 800/month
Unit B) 750/month
My question is how do I "confirm" what the rent actually is? I don't want to just take their word for it. Can I ask to see the rental contracts or past rental prices? Place does look like it may have been renovated recently so that might explain for a bit higher rent.
You need to get copies of the executed leases. Insist upon it. If they won't give it, they are mostly not being honest.
Also, I always ask the each tenant during the walk through to make sure the numbers match.
@Jim Wilcox : I would do what Mark said. You have to get executed leases.
You can also ask for copies of cancelled checks/bank statements. They can deny your request, but you can ask.
I recently heard a story of someone that purchased a property from a bank ordered auction. The PM that was running the properties turned over the "leases" then went MIA when it came time to turn over the security deposits.
Seems all the leases that were called "Executed" were forged or frauds. Made up. They didn't match leases held by the tenants or by rental organizations such as Section 8. So be sure to do as Mark says and see if the tenants will share their leases, and if they match what the owner is giving you.
All a part of your due diligence.
you want to get a signed estoppel from each of the tenants along with their security deposit and signed lease
You should always get copies of the signed lease agreements and proof of rent history. I also ask for any application the current tenants completed along with background checks if available. You want to be sure the tenants in the unit are paying rent on time so you don't inherit a problem. I learned this the hard way. Good luck!
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