Purchasing a triplex with tenants... What do I ask for?

Question

Total newbie in the process of purchasing a 3 unit property (one duplex and one single family home on the same lot) in Florida. Each unit comes with long term tenants, one being there for over 13 years.

I'm wondering if anyone has recommendations on what to include in the buying contract. Right now I have things like, seller to provide signed leases, signed documentation from tenants outlining condition of their units, and security deposits.

Am I missing anything?

George Smith · Answer

I would also ask to see deposit history to make sure that they have been paying. If they havent in some time and they are on a month to month, I might request those tenants to be removed prior to the purchase.

Kyle J. · Answer

It might be helpful to obtain estoppel certificates since the tenants have been there for so long to make sure there haven't been any verbal/side agreements made between them and the landlord that aren't reflected in the lease.

You don't want to buy the property thinking the rent/terms are one thing, and then have the tenants start telling you things like "I know the lease says I'm not supposed to have pets but a few years back the former landlord told me I could" or "I know the lease says I'm supposed to pay $850/month but a couple years ago when I lost my job the former landlord told me I only had to pay $700."

The estoppel certificate can help document/inform you on what the current terms are, whereas the original lease for a tenant that's been there 13 years might only show what the terms were 13 years ago.  Things can, and do, change during a tenancy.

Just something to consider.