Buying My 1st Multi-Unit With Tenants Already In Place. Advice Welcome!

[Chris S.]

Hello, I'm going to put an offer in on a duplex, but they have tenants in both units.  Do you have any tips on how I can protect myself from getting deadbeat tenants?  Or any tips at all on buying duplexes?  This is my 1st one.  Thanks!

[Jon Holdman]

You're bound by the existing leases.  So you definitely want copies of those.  Try to also get estopple letters signed by the tenants.  These reiterate key lease terms and are intended to avoid "yeah, the lease says $1000 a month but we were really only paying $800."  

The other thing is to be sure to get a credit from the seller for the security deposits and partial month rents.

But there's no magic here.  The tenants come with the unit.  You can't just kick them out, do your own screening, or put them on a new lease.  If they violate the lease terms you can evict.  When the leases expire you can choose to terminate or renew and put them on your lease.