Hi,

I am looking into buying a tenant occupied condo. What are the factors that I need to be aware of.

Does the existing lease continue, or a new one is applicable?

Do I need a real estate lawyer to look into this or should a realtor is sufficient?

Thanks

Quote:

---

Originally posted by birentoronto

Hi,

I am looking into buying a tenant occupied condo. What are the factors that I need to be aware of.

Does the existing lease continue, or a new one is applicable?

Do I need a real estate lawyer to look into this or should a realtor is sufficient?

Thanks

---

-----------------------------------------------------------------


Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

It might also depend on where you live and the tenancy laws there.
You may not be able to ask the tenant to leave before the lease is up.
Also be aware of rent control laws, lest you be stuck with years of below market rent.
You should also undertaken routine checks of the tenant to make sure you are not inheriting a bad tenant.
The existing landlord may simply be passing off his problems to you.
It is not uncommon for landlords with problematic tenants to simply sell the property at slightly discounted prices and pass on their problem to someone else.

-----------------------------------------------------------------
"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"

This is good advice; Also I live in toronto

I do have 20% and will get a real estate lawyer to check this out.

How do I check if the tenant has any issues with the landlord?

Thanks

Quote:

---

Originally posted by pratickm

It might also depend on where you live and the tenancy laws there.
You may not be able to ask the tenant to leave before the lease is up.
Also be aware of rent control laws, lest you be stuck with years of below market rent.
You should also undertaken routine checks of the tenant to make sure you are not inheriting a bad tenant.
The existing landlord may simply be passing off his problems to you.
It is not uncommon for landlords with problematic tenants to simply sell the property at slightly discounted prices and pass on their problem to someone else.

---

Thanks for your input.

What anybody have an idea how to check an existing tenant if one is buying a condo unit?

Quote:

---

Originally posted by ashedfc

R/E has already gone balistic, it might be appropriate to wait a while, & observe the strength of the economic recovery. If the recovery falters, than R/E is bound to head lower. R/E is the most most illiquid investment, when it comes to selling. You should not get caught in a situation, where high interest rate, or bad tenant, or lower housing markets, or weak economic condition, etc.etc. can put you in a tight fix, & create a mess of your 20% input.

---

http://apartmentguide.ca/Landlords/Guide/tenant-credit-check.asp

http://www.tenantverification.com/?ref=50

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.

-----------------------------------------------------------------
"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"