Thinking of Buying a Tenant Occupied Property?

There are special considerations when you are looking at purchasing a property that has tenants in place.  Be sure you're aware of the nuances and special conditions that you should consider adding in your purchase contract.

If you are purchasing a tenant occupied property, be sure to include the following conditions:

Ask for copies of any and all lease agreements.  Read these carefully.  Investigate the terms and conditions of the lease.

Ask for a copy of the Tenant's insurance policy.  Ensure that they are covered for their belongings, in addition for your own policy on the property.

Be sure to ask for the security deposit to be transferred.  You will be responsible for refunding the deposit, so make sure you get it from the Seller.

After review of the lease agreement, you can either provide written notice to the seller requiring them to vacate the property prior to possession or the end of the agreement (this can only be done if you are personally planning on moving into the property or have a relative that will be moving in).  Or, you will be agreeing to the current agreement and will be assuming the agreement and tenants as such.

Make these conditions of the sale, and make sure that you're protected and fully aware of what you're getting into.

If you have any questions, be sure to ask Gary Chambers or Kimberly Suntjens at Century 21 Power Realty.