All Forum Posts by: Tony Stephenson

@Tony Stephenson

Just sharing my experience.

I got 2 MLS properties and inherited 2 tenants. My PM checked with previous landlord and confirm payment history, verified their income / credit and approved them. 1 tenant is still at the property after 4.5 years. 1 tenant moved out after 2 years. I didn't have any issues with them since my PM approved them.

My TK properties got tenants in before closing but they were approved by the TK provider / PM.  If TK provider, hopefully is also the PM, didn't include the tenant then I think he/she will place a tenant for free.  You will have to check your contract with your TK provider.

Hope that helps.

Henry

Like any property you buy, due diligence is key. Recently sold a 12 unit with existing tenants. Buyer is a seasoned property manager. They had all tenants fill out a tenant estoppel (shows amount they are paying, security dep. and lease term, etc.)  and credit application. Since this wasn't a performing building we didn't check financials. However if this was we would have asked for the last 2 years financial statements showing the receipts from tenants of rents paid and of course expenses. Depending on the records available I would at least get a history of payments from the owner. They should have some type of record.  Otherwise I would question the quality of the tenant and overall purchase for that matter. 

Welcome Aaron!  Let me know if you are interested in the Greenville, NC area.  Good luck growing your portfolio!!