Transferring prorated rents from seller to buyer

[Paul Stern]

I am about to close on a 24 unit 4 building purchase in Davenport Iowa. Closing should happen sometime between the 1st and the 8th. For those of you who have experienced a closing early in the month, do you have suggestions on how to handle the transfer of rent for the remainder of the month (after close) from the seller to me, the buyer? Specifically, I am concerned the seller will only transfer rents collected and put the collection in my lap. Would you recommend putting the amount into escrow incase there are deadbeat tenants? Thanks in advance.

[Jeff B.]

Rents per se (future) are assigned to the buyer and their deposits are too.

Physical deposit into the escrow is optional and the amounts can just move to your side of the settlement.

If you insist upon prorating rents for a mid-month COE, then the seller can insist upon prorating the expenses - - tit-for-tat.  By the time of a mid-month COE, all rents should already have been collected.

When you specify a contingency for the rent roll, also add rent payment history for the last 6 months to give you a picture of any exposures for late payments,