buying house that already has renters - Landlord Forum thread 348512

buying house that already has renters by Jill (OH) on September 23, 2016 @18:22

My husband and I in the process of considering buying another investment property that already has a family living there. The family has been renting this house for 2 years and their lease ends on June 30, 2017. We have copies of the original lease, their credit report from 2 years ago, and just completed a current employment verification. Everything seems to check out so far. What else should we be checking and looking out for if we do go through with this purchase? I know we need to get the security deposit transferred to us, have tenants sign a new lease - or at least an addendum with us as the new owners - anything else we should consider. Also, the current rent is $1425 per month but they paid $1000 for the security deposit. Can we require them to pay us an additional $425 for the security deposit when ownership is ours? Our other rentals require 1 months security equal to the rent. I appreciate any advice here. Thank you!

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Re: buying house that already has renters by Stephen (Washington) on September 23, 2016 @18:44	[ Reply ]

I can't think of anything else you need to do with the current tenants prior to closing on the purchase. When you close on the purchase the current lease remains in effect so you don't need to have them sign anything (neither a new lease nor some addendum). You do need to provide them written notification that the property has sold and where to send the rent and how to contact you for repairs, etc. I would include a statement about having received the deposit of $XXX from the previous owner. It also helps if the seller also notifies them that there was a sale and who the new owner is. I think of this last part as tying together the old owner (who they know) and the letter they received saying they need to send their rent to a new address. When the current lease is over you may have them sign a new lease with whatever rental amount and security deposit amount you want. Remember to provide at least the statutory minimum notice. I would provide as much notice as possible of these planned financial changes so the tenant can plan ahead.

Re: buying house that already has renters

Re: buying house that already has renters by Nicole (PA) on September 24, 2016 @08:58	[ Reply ]

I would have a letter signed by both sellers and tenants stating who owns the appliances, window hardware, etc. If a move-in check list was done with photos, I'd want those. Also a typed letter signed by both stating that the house was in "perfect" condition when tenants moved in (unless there was something specific they both agree to such as "laundry room floor extremely worn."

Re: buying house that already has renters

Re: buying house that already has renters by Anonymous on September 24, 2016 @17:30	[ Reply ]

ask the sellers why the sec. deposit is less than the rent (is it in the lease or were the tenants trying to pay the sec. deposit off gradually...) then, depending on what the lease says, try to get the rest of the sec deposit from them. Get the move-in condition check list from the seller and if they don't have one, make them sign a statement as to the condition of the house...age of carpeting, appliances, etc when current tenant moved in. I did not do this when I bought a multi unit and I regret it because I tried to get the T's to pay for damages they claimed were there when they moved in. I had no recourse.

Re: buying house that already has renters by Anonymous on September 27, 2016 @23:15	[ Reply ]

request from the seller something in writing as to how much security deposit was collected. i would have the paper notarized. I would honor the lease, and request the additional security deposit when it is time for a new lease(july 1st, 2017).Why would the tenants sign a new lease when the old lease is still in effect?

Re: buying house that already has renters

Re: buying house that already has renters by Jill (Oh) on October 4, 2016 @08:34	[ Reply ]

Google OH L/T statutes. But if all is good with them and it's an investment property, why not wait till lease up to increase security? If there good tenants they may appreciate gesture plus there as already taking care of place. Consider yourself lucky. If place was not occupied you would probably lose at least a months rent,any one decent has to give proper notice.plus time and expense of ads etc. And you would still be gambling with an unknown new tenant.