#1 - Get copies of all leases. This may seem obvious but it is absolutely critical. Check to see if the tenant is allowed to sublet the property (This should be a hard no). Or if they can have roommates. Or pets. If there is no lease you must rely on the tenant estoppel statement. Consider preparing a new lease for them when you own the property.
#2 - The seller must provide estoppel statements signed by the seller and each tenant on the lease. This is especially important if the tenant and landlord have no written agreement (it happens). The tenant estoppel specifies: The move-in/start date of the lease, the current rent amount, the current deposit amount, the date of the last rent increase, all legal parties to the lease, all other occupants (kids or others), any pets or pet restrictions, who pays what utilities, any parking provided and which parking spot(s) or is it street parking, any storage spaces provided to the tenant and if so what space number, if the tenant is facing bankruptcy, who owns what appliances, if the tenant is in default or arrears in their rent, if there are any modifications to the lease (verbal or written), has the tenant moved anyone in to the unit without the notification of the landlord,
#3 - If any tenants are in Section 8 or are receiving government assistance, make sure to get all the paperwork for each unit that is section 8 and get the name of the representative, their phone number, and their email address. Call the rep to verify all information of the section 8 tenants.
#4 - Get the original applications of each legal party to the lease. If they do not have them, have the seller or listing agent make each tenant fill out a new application. What you want is their contact info and their work info. You will not be running credit reports.
#5 - Get all cell phone numbers, work phone numbers, and email addresses of each tenant. Also if they park on the premises, get every make, model, color and year and the license plate number of each vehicle.
#6 - Get copies of all keys to the units and on your final walkthrough before you close escrow VERIFY THAT ALL KEYS WORK! If not insist that the seller provide keys that operate all doors to each unit. Also get keys to any gates, garages, laundry rooms, etc. MAKE SURE THEY WORK!
#7 - Get 6 months to a years worth of utility bills.
#8 - Try to meet each tenant in person. I'm a good judge of character and you probably are as well. If you see any problem tenants, or tenants that are slovenly or super messy, you'll probably have problems. Also this is a good time to check if there are more people living there than is on the lease. This is also a good time to ask them if there are any repair issues with their unit.
#9 - Verify if any tenants or are in arrears or are constantly late payers if you can.
#10 - Prepare and deliver a letter to each tenant notifying them that there is a new owner or new property manager, tell them where to send or direct deposit their rent each month. Remind them of the date rent is considered late and how much the late fee is. Give them a phone number or email address so they can contact you or the management company if they have problems.
#11 - Make sure you ask fellow landlords or your broker for 3 good recommendations to landlord/eviction attorneys. You'll need them at some point.
#12 - Join a local Apartment Association landlord organization. Stay up to date on any changes to the laws or if you are in a rent control city how things work.
I think that is all for now. I've been selling rent property for 37 years in L.A. Some of this stuff might not apply to your city or state but most of these recommendations may. DRE lic 00919713
