Buying a property with tenants already in it.

[Richard Campbell Jr]

I am closing on a duplex rental property on May 31st. The rent is due on the 5th and on the 15th for each unit. How will the transfer of rent work since I will own the home in the middle of a tenant's pay period? Also, when will the transfer of rent occur? Does that happen on the day of closing? Same question for the security deposit. Will that transfer occur on the day of closing?

Thanks!!!

[Jim Shepard]

Make sure you get a copy of the leases along with any before move in sheets / pictures. I would suggest getting what is called an estoppel letter signed by each tenant. The letter will verify that there aren't any "side deals" between the existing landlord and tenants. I bought a duplex with existing tenants and didn't know about the estoppel letter. The lease stated the tenants were to pay for trash and water. The LL was paying and set a precedent so I had to pay those bills until there lease was up.
Make sure you get any deposits from the LL!