Typically the purchase of an investment property is smooth.  Sometimes title work complicates the process or the buyer’s financing falls through.  Occasionally, you see a property seller start to do strange things.

My customer purchased a multi-unit property that had one vacant unit.  As part of the purchase agreement, we require that we are able to show and lease the property prior to the closing.  This helps us get a jump start on finding a new tenant.

The customer was at the property showing a unit and ran into one of the other existing tenants.  She told him she was moving out at the end of the month because the existing owner was a crook [her words].  Seems she claims that he stopped by looking for not just this month’s rent, but next month’s rent also (when my customer would actually own the property).  Luckily she was smart enough to realize that she had no reason to pay him next month’s rent early regardless of who owned the building.  Needless to say, my customer was quite upset.  A quick call to the listing agent put that problem to bed.

I recommend that when you buy a building that is currently rented, you as the buyer should go over to the property as soon as possible to introduce yourself and assure the tenants that you want them to stay.  Talk to them about what they like and don’t like about their unit.  Confirm that in fact there have not been any side deals made with the current owner.

This short 30 minute visit can help alleviate many silent deal killers prior to closing!

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