Looking to buy a home with tenant? Though it might appear to be a very daunting task, it will actually be the smart move providing you do it the right way by taking help of experts like Brad Zackson. Here’s your guide on how you must navigate this process.
Evaluate the Agreement
It is very important that you properly assess the lease agreement of your tenant. You need to take a look at terms & conditions, which includes the rent, any due payment date, and lease length. It is also very important that you understand if lease can be transferred to the next owner or if tenant has any right to terminate this lease early. Suppose the tenant does not have any right to terminate this lease early, then you will be needed to honor those terms of lease till it expires.
Talk With Your Tenant
When you have properly evaluated the lease terms, you must start negotiations with your tenant. Begin by introducing yourself & explaining your plan as a new owner. Stay honest and transparent about your ideas or plans for that property. Suppose you are planning to move in the place, then let your tenant know beforehand so that they will start to plan things accordingly. Suppose you are planning to keep your tenant, make them aware and negotiate terms of your lease agreement.
Address Any Issue
You need to conduct a proper property inspection before you finalize the purchase. You need to check for any kind of potential repairs and maintenance issues that have to get addressed. Suppose there are any kinds of issues, then you need to negotiate with your seller to have this fixed before you close a deal.
Consult Your Lawyer
Ensure you consult with your real estate lawyer or professional property management firm that will help you give proper idea. They will help you to navigate the financial and legal aspects of your transaction. The property management company will help you to manage the property as well as tenant’s lease agreement.
Purchasing a home with tenant will be the smart move when it is done in a right way. You need to assess tenant’s lease agreement, conduct a proper property inspection, negotiate with your tenant, and consult with the professionals. With proper planning and execution, you will be able to successfully purchase the property with your tenant and enjoy all the advantages of the rental income.