Finding and purchasing a rental property is stressful! Consider now that it often comes with current tenants already in place, otherwise known as “inherited tenants.” These tenants can make that purchase either really great or seriously disruptive. While ideally, you would love to start with tenants you have screened and vetted yourself, unfortunately, you must honor the terms of their existing lease with the previous owner until expiration. So how do you handle the inherited tenants that came with your new rental property?
This guide will help you evaluate these inherited tenants before placing an offer, during due diligence, and know what’s important to do with these new tenants after the purchase.
Before You Put An Offer On the Property
Typically, upon request, a seller or their broker representative will provide a disclosure package to prospective buyers to show the basic information that will help determine if the property is worth moving forward with an offer.
