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The Essential Guide to Buying a Rental Property with Existing Tenants

New Oklahoma City Landlord Talking to TenantsAs an OKC  rental property investor, you have countless options to pick from when you’re ready to purchase your next property. If listings are too few or you’d rather buy into a turn-key property, buying a property with current tenants could most certainly be quite lucrative. At the same time, however, there are some things you need to be informed about before purchasing a tenant-occupied rental property. Read on to learn how to buy a single-family rental property with current tenants.

Benefits of Buying an Occupied Rental Property

As you embark on your search, you should apprehend a few of the benefits of buying an occupied rental property.

Before all else, having a rental property with current tenants concludes the property is already bringing forth income. This is most definitely a big plus if you are seeking immediate cash flow or adding to your portfolio quickly. Furthermore, since the property is already generating rental income, it will likely be easier to get approved for financing by traditional lenders.

Another benefit is that an occupied rental property means that there is already a renter in place who is familiar with the property. This can be a very big time-saver for you as the new owner taking into account that you won’t need to spend time and money marketing the property and screening potential tenants.

Things to Consider Before Buying

Now that you know several benefits of buying an occupied rental property, there are a few things you need to consider just before making an offer.

The Lease Comes with the Property

First of all, it’s pivotal to ascertain that you’ll take on the current tenant’s lease when you purchase the property. You’ll be responsible for any repairs or maintenance issues during their tenancy. In addition, you will be held to the lease terms in place, on top of the monthly rental amount, due date, late fees, etc. If the tenant fails to pay rent or damages the property, you’ll be responsible for those issues.

Property Condition May Vary

It’s, in a like manner, really important to take a very careful look at the property’s condition. Even if the tenant has been taking good care of the rental unit, there could be underlying issues you’re unaware of. Therefore, it’s really important to have a professional home inspector review the property before making an offer. Consequently, you can completely make sure that you’re buying a property in good condition.

Potential for Unhappy Tenants

Moreover, you need to know the possibility of unhappy tenants. Typically, selling a rental property with existing tenants will go well, and there are barely any issues. But that is not always the case. Even if you inherit very nice tenants, they may not be glad about getting a new landlord. The sale of a property is a big deal to many tenants and may result in feelings of betrayal or discontent – especially if they’ve lived there for a long time. If their previous landlord did not visit the property often or raise the rent, they possibly might find these changes irritating and unpleasant.

Potential for Uncooperative Tenants

Another potential issue that may eventually happen with an existing tenant is that they don’t wish to respond to requests for screening documents or set a time to inspect and perform maintenance on the property. When you purchase a rental property with current tenants, it’s pertinent to communicate effectively.

Property Management Plan,

Most importantly, it’s critical to have a realistic plan for managing your rental property. Owning rental property comes with a lot of work and responsibility; closely working with expert local Oklahoma City property managers is important to get your rental property in shape and communicate effectively with existing tenants. The ideal professional property manager can help smooth the way to profitable, long-term rental property ownership.


Getting a rental property with current tenants comes with its own set of benefits and challenges. However, if you’re attentive to and get ready for those challenges and have the best people on your team, you can certainly find a beautiful rental property that will provide you with a steady income for years. For more information or to chat with a local rental market expert, contact Real Property Management Elevate at 405-876-7611 today!

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