o you finally found the property is selling.
perfect property that a
tired landlord wants to Once you determine the situation
sell. You have to wonder why they and if you still feel good about
trying to sell. Do they want to going forward you then need to
upgrade their property with a consider a few things. What you
1031 exchange, have all the money do next will make all the
they need selling you a ready difference in the world in your
made money machine, or has the cash flow going forward. If the
tenant taken control and is now house is rented, after reviewing
driving them nuts? the existing lease, you will want
to include language in the
You are going to want to get purchase agreement about
copies of existing leases, receiving current months rent and
statements of security deposits, security deposit at the closing.
move-in inspection reports, rent We make the leases attachments to
rolls for the last year, tenant the purchase agreement.
contact information, tenant
applications, expenses for the We like to close on the fifth of
last year and any warranty the month, and request the seller
information for warranties in to pay us the full monthly rent
place. Some buyers even go to the at closing. It then leaves the
extent of getting statements from issue of rent collection to the
each tenant as to their seller if the tenant is late with
interpretation of their their current months rent. It
obligations under the current also minimizes the amount we have
lease. To do the latter, you will to come up with at closing.
need the seller’s permission to
contact the tenants and they may The rent roll will give you
not want them to know the payment history so you will know
up front which tenants pay on change of property management,
time and which are habitually the date of change, where to send
late. For the ones with the bad future payments, who to call with
habit, you will know to take maintenance issues and the bank
immediate action when they are account number where their
late with their payment so they security deposit is now being
will know you mean business. held. You can use this occasion
to reemphasize your expectations
Last years expenses will include of the tenant’s performance under
payments made to service the existing leases.
providers. The list may reveal
that you have to pay certain Use the transition of property
utilities such as water & sewer manager to meet with the existing
of trash pick up and this tenants and find out if anything
information may not have been is in need of repair. This goes a
mentioned by the seller in the long way toward good will, and it
negotiations. The last thing you gets you into the property to do
want at the purchase is the a quick inspection.
seller canceling a service and
the tenant being without water or Handle the transition in a
trash pick up. businesslike manor; remember now
you are in the property
You will need to send a letter of management business.
notification to the tenant of the
About the Author:
Mark Lackey is a real estate investor in Atlanta and works with The REI Team at Solid Source Realty, Inc. http://www.theREIteam.com. He frequently helps other investors in their pursuit of financial freedom as the Vice President of Solid Source Property Management, Inc. http://www.solidsourcepm.com
Read more articles by:
Mark S. Lackey
Article Source: www.iSnare.com 
