Some basic questions

[Karen M.]

Hi BP Friends,

I have a few basic questions about buying a building that has existing tenants.

So, if I was to buy a duplex or multi family that has tenants in it.... what happens?

1. Do I inherit their leases or write new ones?

2. If the renters are month-to-month, does that stick through the sale
(why would you go month-to-month?)

3. Does the previous owner pass the tenants' security deposits to me?

4. What else do I need to know about getting tenants with a building?

5. Is it normal to ask the seller / seller's realtor questions about the existing tenants and their payment history? Like, have they been late, had any issues, etc?

6. Do you consider the quality of the tenants in your property evaluation? For example, I looked at an area where a seller is selling 3 duplexes in a street that is lined with duplexes. If you were to buy one, how would you choose "the pick of the litter?" Do the tenants figure into that equation?

(I'm new, so the thought of getting renters with a property is appealing, less work to market the property and screen if the property is set up an functioning well as is. However, I obviously need to learn about rental marketing, screening and leasing.)

Thank you so much!
Karen