what questions to ask when inheriting tenants ?

[Matt F.]

Hi BP  - in the process of considering a the purchasing a property with long term tenants already in place. (5-6 years now) what questions should i be asking prior to purchasing, related to the tenants?   

[John Knisely]

@Matt F., I would insist on speaking directly with the tenants, in addition to the seller/owner. Ask the owner about payment history, any major incidents, tenant stability, etc. Get as much documentation on them as you can. Leases, background checks, move in condition checklists ( so you can provide proof of damages when they leave). You may not always get an honest answer, especially if the owner is selling because of the tenants. Ask the tenants if they plan on staying (assuming you plan to keep them), where they work, etc. Could go as far as re-qualifying inherited tenants, if they don't meet your criteria, don't renew their lease the next time it is up.