Sometimes, purchasing a piece of tenant-occupied real estate is a great choice. But, other times, it isn’t.
By being aware of the advantages and disadvantages that can come from purchasing tenant-occupied real estate, you can assess whether or not doing so is the right choice for you. The North Carolina real estate attorneys at Wilson Ratledge can help review the pros and cons of tenant-occupied real estate as they apply to your specific situation.
What Is Tenant-Occupied Real Estate?
Tenant-occupied real estate refers to properties that are owned by a landlord or investor but are rented or leased out to tenants.
The tenants may be individuals, families, businesses, or even other entities depending on the type of property (residential, commercial, industrial, etc.). The property may include houses, apartments, offices, retail spaces, and more.
What Are The Advantages Of Purchasing Tenant-Occupied Real Estate In North Carolina?
A variety of advantages can come from purchasing tenant-occupied real estate in North Carolina. Some of the most notable benefits that can come from doing so are as follows:
- You have access to an immediate cash flow due to the presence of existing tenants.
- You no longer need to search for good renters to occupy your new property.
- You may benefit by having a property that is at very low risk of being left vacant in the near future.
- You have tenants that may have a track record of taking good care of the property.
- You can save time/money by not needing to find tenants to assist in paying any property costs.
Even though these advantages exist, there are a variety of disadvantages that can come from purchasing tenant-occupied real estate in North Carolina.
What Are The Disadvantages Of Purchasing Tenant-Occupied Real Estate In North Carolina?
A variety of disadvantages may come from purchasing tenant-occupied real estate in North Carolina. Some of the most notable disadvantages that can come from doing so are as follows:
- You may find that the current tenants are bad tenants who fail to pay their rent.
- You may find that the current tenants are bad ones who fail to care for the property.
- You will be forced to rely on the previous landlord’s tenant-screening process.
- You may find that the current tenant-screening process is inadequate and it’s difficult to evict bad tenants.
- You might need to find new tenants if the current tenants are about to move out.
Some of the problems these disadvantages can lead to will necessitate speaking with a real estate lawyer.
Outside of those disadvantages, it’s worth noting that many tenant-occupied properties house tenants that have lived there for an extended period of time. Given this fact, if there are any rent increases you plan on proposing, the current tenants may be less than receptive to them.
Should You Purchase Tenant-Occupied Real Estate In North Carolina?
The simple answer to this question is “It depends.”
Some people may find purchasing tenant-occupied real estate to be the best possible choice. But, others may find doing so to be a very poor choice that fails to lead to the desired security and abundance.
To determine whether or not purchasing tenant-occupied real estate is the best possible decision, it is worth considering the advantages and disadvantages that can come from doing so.
After you do so, you must go over the current tenant agreements, as well as the tenant-screening process that the previous landlord relied upon. By going over both of these, you can determine whether or not they meet your current needs and your future goals.
If you are comfortable with those advantages and disadvantages, as well as the current agreements and tenant-screening process, then it’s worth doing so. But, if you aren’t comfortable with them, then it’s best not to purchase a piece of tenant-occupied real estate.
Speak With A North Carolina Real Estate Lawyer Today
No one can determine whether or not purchasing tenant-occupied real estate is the appropriate choice for you. But, by speaking with a North Carolina real estate lawyer at Wilson Ratledge, we can assist you in determining whether or not you should buy a particular piece of real estate, and we can help you do so.