Posted on: 11-08-10 16:18:27
Hi Pratick,
Can you elaborate on:
"Make sure the seller transitions over the next month and last month's rent over to you as part of the closing process (since he would already have received those from the tenant)."
Thanks
Quote:
Originally posted by pratickm
True, but at the very least you should do credit check and employment check.
Make sure the seller transitions over the next month and last month's rent over to you as part of the closing process (since he would already have received those from the tenant).
Review the tenancy agreement carefully.
It is also true that evicting a non-paying tenant is not easy since the LTB usually sides with the tenant and expects the landlord to keep giving new chances to the tenant.
It is one of the risks you take when buying a pre-rented property or when buying rental properties for investment.
Surprising to see that even though most of us rented houses/apartments when we first came to Canada, almost every one is advising to be beware of bad tenants - as if they all had given a hard time to their landlords!!!
I on the other hand never care about the quality of tenant simply because I believe in the inherent goodness of mankind and have no reason to think that a tenant would not be as good as me.
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Chandresh
Advice is free – lessons I charge for!!
Quote:It is standard practice to pay next month's and last month's rent in advance when signing a tenancy agreement.
Originally posted by birentoronto
Can you elaborate on:
"Make sure the seller transitions over the next month and last month's rent over to you as part of the closing process (since he would already have received those from the tenant)."
Say you purchase the property from the seller effective 1st Sep 2010 and the rental agreement is valid until Dec 2012.
The seller has already received the rent for Sep 2010 and Dec 2012.
But that rent really belongs to you.
So that amount must be adjusted against the final settlement during the sale.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by chandresh
I on the other hand never care about the quality of tenant simply because I believe in the inherent goodness of mankind and have no reason to think that a tenant would not be as good as me.
Is this a joke?
Tenants come in numbers, qualified tenants are handful.
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
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If you take the tenant and things go wrong, is not sufficient to deal with a problem tenant is faced with a problem tenant is paying less than market price and you think he / she wants out? You have no choice but to occupy the unit, and may still be months of hell, if the tenant is not playing well.
Very often the care of a tenant is more of a headache, then its worth. I have never had much luck with that credit check, employment verification letter, particulars of the previous owners, and if you can / want to have a conversation with him by phone or in person better. You can feel the craziest of the time.
Buying a house with a tenant is the worst of all the options..
Finding a tenant is not hard.. much harder is to collect rent from a problematic tenant.
You want to put up 150 to 300K of ur money and want the tenant to come along.. I call it fools gold..
If u like the place buy it outright with clean title and without tenant..
Publish ads in Canadian desi and local newpaper u will find tenant in 1 month..
Always check credit before renting out place.
