Appropriate steps to take with renters already in a new property

[Jacob Lindgren]

Hello all, I am considering a property right now that already has a tenant in it. They are under contract until July 2023. From what I understand, they are prompt payers. I am not overly concerned about them and they do not feel like a deterrent from buying the property. My question for you all is what steps and procedures should I consider doing the closing process as well as with the tenant during the time of transition? Thus far, my plan is to ask for the deposit and to prorate the month's rent at the day of closing. Any help would be appreciated!

[Garrett Christensen]

When purchasing a property that already has a tenant, there are a few important steps and procedures that you should consider. Here are some general guidelines to help you through the closing process and transition with the tenant:

• Review the tenant's lease agreement carefully. Make sure you understand the terms of the lease and the tenant's rights and obligations.
• Communicate with the tenant. Let them know that you will be the new owner of the property and provide them with your contact information. It's important to maintain a good relationship with the tenant and to keep them informed of any changes that may affect them.
• Consider the tenant's rights under the law. In most cases, the tenant has the right to continue living in the property until the end of their lease, unless they violate the terms of the lease or you have a legal reason to evict them.
• Handle the financial aspects of the transition carefully. This can include asking for the deposit and prorating the month's rent at the time of closing, as you mentioned. Be sure to keep detailed records and follow all applicable laws and regulations. Your Title company may already be handling that.
• Have a plan for managing the property. Once the property is yours, you'll need to decide how you will manage it, whether that means hiring a property management company or handling it yourself.