So you are ready to expand your portfolio in real estate residential investment property. Knowing if you want to take on the existing tenants , or finding your own will help you immensely in making a decision on purchasing an investment property. Here are a few things you should know when taken on existing tenants.
1. UNDERSTANDING THE TENTANTS RIGHTS AND THE LEASES
Under the Alberta tenancy Act month to month tenants without a lease in place, can reside in the property for up to three months starting at the time their given notice .Although, Tenants who are in a lease can stay in the property until the lease is over even if the property is sold. Unless the tenants and the landlord come to agreement in written to end the lease early or make some other arrangements.
2. 24 HOUR NOTICE
Tenants require 24 hours written notice place on front door before anyone enters the premises. If you show up before the 24 hour notice they don't have to let you in. Unless the tenants and the landlord have a written agreement in place to arrive early. Or if the tenants are understanding.
3. ASSUMING THE TENANTS AND THE SECURITY DEPOSITS
Buyer's of an investment property will assume the tenants and the security deposits from the seller that come with leases that are in place with the property. The seller's and buyer's lawyer's will have the appropriate paper work in place for this to happen. It will state this most of the time in the purchase contract. However it ever hurts to double check these things with your lawyer.
I hope these few tips, help you through your decision and help avoid some unwanted stresses when purchasing a residential Investment properties.
Till next time cheers,