Selling a property/rent collected
When selling a rental property, is it usual/customary to reimburse the buyer the portion of the rent for the rest of the month after closing? For instance, if closing were held today, 2/16, would I need to reimburse buyer 12 days of rent that was already collected at the first of the month? What has been your experience?
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#3 Guru, Book, & Course Reviews Contributor
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Hi, look at it this way. You accepted funds to convey to your tenant a lease hold interest in the property you own for a period of time. If you do not own the property can you legally provide that interest? If you can no longer convey that interest to the tenant do you think you are entitled to keep funds for something you can not provide? Pre-paid rents go to the owner. Deposits are unearned amounts that should be in conveyed in cash, it's still the tenants money held in trust by the landlord to cover items or events that may occur in the future. Your closing agent will explain what is customary in your area. Good Luck, Bill