Why you should buy rental properties in the middle of the month

[Alan Asriants]

Closing on a rental property can be a tricky process, especially if you're inheriting tenants. While closing on the first or last day of the month may seem like the most convenient option, it's actually better to close in the middle of the month. Here's why:

Inheriting tenants can be a challenging experience, and having your first conversation about rent may not be the best icebreaker. Tenants don't know you yet, and talking about finances with strangers can be uncomfortable for everyone involved. By closing in the middle of the month, you can introduce yourself and get to know your new tenants before discussing finances.

Secondly, when you close in the middle of the month, you'll be prorated what the previous landlord received for rent. This means you'll get paid for the portion of the month that you own the property, without having to deal with the headache of collecting rent from tenants you don't know yet.

Getting to know your tenants before discussing finances is important, as people tend to be more defensive than open when talking about money with people they don't know. Once you've built a rapport with your tenants, it will be easier to have those conversations. In fact, they might bring up the topic themselves since they are used to a routine.

By closing in the middle of the month, you'll also have more time to get a feel for your tenants and their habits. This way, when you do have the money conversation, you'll have a better understanding of what to expect.

Side note: Ask the previous owner for 2-3 months of proof of payment to ensure that the tenants are reliable and paying on time.

Hope this helps!