Prop Hound
Buying an Occupied Rental Checklist
Buying a property with a tenant already living in it isn't the same transaction as buying a vacant one. These are the extra steps that protect you when someone else's lease comes with the deal.
- Got a signed estoppel certificate from the tenant confirming the actual rent, deposit, and lease terms, not just what the seller claims.
- Confirmed the rent actually being paid matches the rent roll. Asked for recent bank deposit records or a rent ledger, not just the lease's stated amount.
- Reviewed the full lease: term remaining, renewal terms, pets, and any side agreements the seller made with the tenant.
- Confirmed in writing that the full security deposit transfers to me at closing, not just verbally promised by the seller.
- Confirmed any other tenant-paid deposits (pet deposit, last month's rent) also transfer at closing.
- Decided whether I'm honoring the existing lease as-is or need to plan around its end date before making any changes.
- Arranged a walkthrough of the occupied unit with proper notice to the tenant, not skipping the inspection because someone's living there.
- Confirmed how and when the tenant will be notified of the new ownership, and where to send rent going forward.
- Asked about any outstanding maintenance requests or unresolved disputes with the current tenant before closing.
How to use this checklist
Work through it top to bottom for the specific property or market you’re looking at, and don’t mark an item done until you’ve confirmed it yourself or heard it from someone you trust. If an item doesn’t apply, write down why, since the reason is often the thing you want to remember when you compare it against the next property. Keep your answers somewhere you can find them, such as a note per property. It is general information, not tax, legal or financial advice, so check anything high-stakes with a qualified professional. You can also print this page or get the PDF in the First-Time Investor Toolkit.
More rental investing checklists
- The Market Selection Checklist
- Financing Options Rundown
- Tenant-Friendly vs. Landlord-Friendly States
- The Out-of-State Investing Checklist
- Canadians Investing in US Property Checklist
- The Deal Analysis Checklist
- The Property Walkthrough Checklist
- The Offer Submission Checklist
- Working With an Inspector
- Closing Day Checklist
This checklist covers one step. We check new listings every night.
Prop Hound screens new rental listings in your market against your own numbers, so you only see the ones worth running a checklist like this on.