Am I missing anything? Inheriting Tenants

[Irene Chen]

We are in the process of closing on a duplex in St Pete.  One of the units is occupied with a new lease so we are inheriting those tenants. I wanted to make sure we're not missing anything before we close:

• Requested an estoppel agreement to be signed at the final walk-through
• New/updated lease will be signed honoring the previous terms
• Requested to see the rent roll
• We have a copy of the lease
• The sellers agreed to replace the roof before we close; we asked for the roofers information to make sure they are licensed/will pull a permit, and to get information on the roof.
• Will confirm that security deposits will be transferred

Another concern/question I had is about paying cash for keys.  The tenants are smokers, have a record, and are possibly getting a dog (through some type of disability program) even though their current lease says 0 pets.  We were thinking of giving them 2 months rent and asking them to find a new place.  Is this legal if they agree?  Can anyone think of anything to be careful about?

[Kyle J.]

A few thoughts:

- Regarding the estoppel certificates = I'd get the completed/signed certificates before the final walk-through so if there's any discrepancies or issues you have plenty of time to resolve them before closing.   

- Regarding having the tenants sign new/updated leases = The existing leases remain in effect after the sale.  There's nothing wrong with having the tenants sign your own lease IF they agree to do so, but just know that there's nothing that says they have to sign a new lease during the existing lease period.  Doesn't hurt to try though. 

- In addition to transferring the security deposits, make sure if there was any sort of pre-paid last month's rent collected that it also gets transferred. 

- You'll also want to get a copy of any pre-move in checklist (and photos if there are any) showing what the condition of the property was when the tenants initially moved in.  Could come in handy if they leave any damage whenever they move out.  Without this documentation, it'd be very difficult to make any deductions from their security deposit for any damage because you wouldn't be able to prove it wasn't already there when they moved in.

- Don't forget to get a home inspection done on the property if you haven't already.

- Once you take over ownership, be sure to give the tenants your new payment address and instructions.  Afterall, you want to make sure you get paid.  :)

- Lastly, be careful with the tenant who is "possibly getting a dog through some type of disability program".  If they have a legitimate disability and are getting a service animal, that's not a violation of a "no pets" clause in a lease.  If there is some other reason you want them gone, then you can certainly offer them cash-for-keys if that's what you choose.  But I wouldn't make it about the dog or it could potentially be seen as discrimination or retaliation if they have a legitimate disability/service animal and they perceive that as the reason you are actually trying to get rid of them.  Just something to be aware of.

Good luck and congrats on your new purchase.