Exisiting Tenants - What Can I Ask

[Rob Saxelby]

Hi everyone,

I'm hoping to purchase my first investment property next year, specifically a multi-family home. I've been looking in different areas of the country. Sometimes the properties have existing tenants. I'm interested to hear your best practices on what questions you can ask of the property manager? For example, am I able to ask the length of the tenant's current contract (e.g., month to month), have they always paid on time each month, etc? Would love any insights you have.

Thanks in advance!!

[Taylor L.]

You can and should absolutely ask those things. Financial due diligence is part of the overall due diligence process. Financial due diligence includes an audit of the leases and financials.  If you're talking with a broker they should be able to get that information for you.

When you take over a property, you take it over with the existing leases and tenants. Best to look before you leap!