If your new purchase includes existing Tenants you need to watch this video!


So you inherited Tenants when you bought a property? That’s great news for income!

Part of your due diligence should be a Tenant Estoppel letter, aka a Confirmation of Rental Terms. In fact, your bank might even require this in addition to a certified Rent Roll.

Why is this important? Because you want to clarify how much money is where prior to closing.

Tenant Estoppel letters are a way of dotting your “i”s and crossing your “t”s. It’s a statement or record that is signed, preferably, by both the Selling landlord and the existing tenant. These documents should state:

  • What’s the current rent amount
  • How much of a security deposit is being held
  • What is the parking arrangement / agreement.
  • Who pays what utilities
  • Who are the tenants / occupants.
  • Who owns the appliances, fixtures and other items.
  • Are there any special agreements. For example, does the tenant in Unit 2 get a discounted rent because they do lawncare. If so, what is the specific agreement?

Don’t skip this really important step anytime you purchase a property with tenants in place.

00:00 Introduction

00:57 Adam Thayer, Esq.

01:31 What is a Tenant Estoppel Letter?

02:59 RIAR Language in Confirmation of Rental Terms Form

04:14 Confirming Security Deposit

06:37 Parking Spaces – Be sure to clarify

06:56 What you need is the Tenant to Sign!

07:25 Tenant Estoppel can provide proof in litigation

09:12 Custom Tenant Estoppel Certificate from Adam


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Sandi Warner, Esq. | Managing Broker  
Warner Realty Group, LLC
358 Broadway, Newport, RI, 02840
Cell: 401-662-7204 | Office: 401-236-8685
[email protected] RhodeIslandListings.com/Sandi-Warner/