Looking to buy first property - already rented

[Christa P.]

So, I am attempting to buy my first property.  The current one that I have an offer on is already rented.  The current landlord has had it rented to this guy for over two years.  He did NOT do a background check or credit check.  So, he can't provide this info to me.  The landlord says he has always paid on time and been no issue at all.  (Of course, this guy is also trying to unload the property!)  I am planning to reach out to the tenant today to speak about the checks and do some pre-screening.  This is a contingency in my contract - that I approve the current renter.  What advice do you have for me?  What do I want to make sure I do or ask?  Thank you!

[Harrison Harner]

I wouldn't personally make this a contingency in the sale because if you're buying a performing property, you can always fix a tenant issue.  It is a good idea to have the tenant fill out an application and run the checks, though. If bad information turns up, it might serve as a bargaining chip and you may need the information in the future.

I'm learning this the hard way right now. My inherited tenants stopped paying rent. Now that I'm evicting, having SS#s and dates of birth would make it easier to prove that they're not in the military. Now I have to pay a Marshal to observe them.