Here in Northeast Atlanta we are seeing more and more properties being sold with tenants either occupying the property or leaving just before the closing. Here are some things to provide for in your contract to avoid surprises at closing.
SHOWINGS
Make it easy on your tenant. Give them a lockbox and tell them not to put it out with out their approval. Only schedule reasonable appointment times (10 to 6 is generally reasonable.) Walk through the home with them to help them stage it. Make sure to inform them to put away (preferably lock away) small, easily pocketed valuables. Consider offering them a rebate or credit if they are cooperative (defined by the agent.) Make sure you ask them if they would like to purchase the home first.
PERSONAL BELONGINGS
Get the tenants to agree as to what appliances, fixtures are theres. Many an owner ends up buying an appliance they misremembered as theirs when its’ the tenants.
SECURITY DEPOSITS
If there is a security deposit being held by the Seller, be sure the contract stipulates whether the deposit will be transferred at closing. If the tenant is remaining in the property after the closing, the Purchaser will be responsible for refunding that money.
If there is a lender involved, the lender will need to know about this in advance to get it approved by their underwriting department.
RENT PRORATION
If the rent needs to be prorated then there should be a contract stipulation stating what the proration will be based upon. The closing attorney will need to know in advance what the terms of the lease are and if the current month’s rent has been paid.
If there is a lender involved, the lender will need to know about this in advance to get it approved by their underwriting department.
VERIFY ALL THE TERMS OF THE LEASE
Often times after years of residency leases get verbally changed or changed in writing. be sure you’re honoring all the current lease stipulations and make sure the purchaser has a copy of the current lease. Draw up a new one if necessary.
INSURANCE POLICY
The Purchaser will need to be aware that they should purchase a Homeowner’s Insurance Policy that provides protection as a Landlord.
The Gang at Northwest Atlanta Property Management
