Investors are often looking to buy property which generates rental income. Many investment advisors see property as a key component of the financial portfolios for high net worth individuals.
Realtors should ensure that their investor clients have all the information they need to make a decision on a rental property. In addition to the considerations of resident buyers, investors need to know:
- The Current Monthly Rent
- Date Tenancy Commenced.
- Due Date for Rent.
- Date of Last Rental Increase.
- Prepaid Amounts on Deposit.
- Payment History with the Tenant.
- Damage/Complaint History with the Tenant.
- Obtain a copy of the written tenancy agreement between the parties
When working with investors, the Realtor should add the following clauses to the standard contract of purchase and sale:
- The Seller represents and warrants to the Buyer that the Residential Tenancy Agreement with ____[Tenant]_________ attached to this Contract is in good standing, and has not been modified or amended by the parties.
- The Seller represents and warrants to the Buyer that the rent roll for this property is as follows:
- Current Monthly Rent:
- Date Tenancy Commenced:
- Due Date for Rent:
- Date of Last Rental Increase:
- Prepaid Amounts on Deposit: