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Rents (as well as real estate taxes) are usually prorated at closing unless there are clauses in the purchase agreement stating otherwise. In other words, if you close the transaction 2 days prior to the day of the period that the rent payment covered, you should receive a proration of those 2 days. You should also receive any advance rent payments that the tenant made - including damage, security and/or pet deposits. When the tenant vacates, you are responsible to disburse these deposits in accordance with the rental/lease agreement.
Rents (as well as real estate taxes) are usually prorated at closing unless there are clauses in the purchase agreement stating otherwise. In other words, if you close the transaction 2 days prior to the day of the period that the rent payment covered, you should receive a proration of those 2 days. You should also receive any advance rent payments that the tenant made - including damage, security and/or pet deposits. When the tenant vacates, you are responsible to disburse these deposits in accordance with the rental/lease agreement.
Thanks. That's what I was asking, as far as the pro-rated rent. The rent is being handled by a property management company, so I just assumed that they would be handling the disbursement of security deposit, etc. Is that incorrect? I wouldn't be on the hook for their fee, would I? I assumed that they would be collecting their fee as a percentage from the rent, so they wold just collect their fee out of the last month's rent, right?
so I just assumed that they would be handling the disbursement of security deposit, etc. Is that incorrect? I wouldn't be on the hook for their fee, would I? I assumed that they would be collecting their fee as a percentage from the rent, so they wold just collect their fee out of the last month's rent, right?
Stop. Stop assuming. Ask. Get tje amswer in writing. This is not the kind of transaction that you should be relying upon assumptions. There are laws that do cover this situation but they vary from locality and state to state.
Do find out exactly what the situation is in your locale. Find out exactly the answers to your questions from your agent and attorney. Make sure you understand that, should the tenant decide to NOT move and NOT pay rent, you are still liable for the mortgage payment AND may have to pay for the eviction costs.
Relying upon your own assumptions and verbal assurances of the seller's agent may prove extremely costly for you.
Stop. Stop assuming. Ask. Get tje amswer in writing. This is not the kind of transaction that you should be relying upon assumptions. There are laws that do cover this situation but they vary from locality and state to state.
Do find out exactly what the situation is in your locale. Find out exactly the answers to your questions from your agent and attorney. Make sure you understand that, should the tenant decide to NOT move and NOT pay rent, you are still liable for the mortgage payment AND may have to pay for the eviction costs.
Relying upon your own assumptions and verbal assurances of the seller's agent may prove extremely costly for you.
Good advice. Stop assuming and talk to the management company directly about their procedure to handle this situation. If the tenant becomes your tenant after closing, then you would likely need to sign a new management contract if you want them to handle wrapping up the loose ends.
By the way, the OP is buying in AZ, so there is no attorney involved in the RE transaction unless the OP wants to hire one specifically to review these concerns. However, the management company should know the AZ tenant laws.
Good advice. Stop assuming and talk to the management company directly about their procedure to handle this situation. If the tenant becomes your tenant after closing, then you would likely need to sign a new management contract if you want them to handle wrapping up the loose ends.
By the way, the OP is buying in AZ, so there is no attorney involved in the RE transaction unless the OP wants to hire one specifically to review these concerns. However, the management company should know the AZ tenant laws.
Thank you for advice. Just to clarify, I am in CA, not AZ, so that may make a difference in what advice people give.
Thank you for advice. Just to clarify, I am in CA, not AZ, so that may make a difference in what advice people give.
Sorry, thought from other posts you were buying in AZ. Must have confused you with someone else. CA does not use attorneys either.
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