Okay, so you might be able to agree here that closing day has a way of making everything look very finished, even though it really isn’t. Honestly, that’s especially true here if this is actually your first-ever time investing. But really, think about it for a moment; the documents are signed, the property officially belongs to you, and there’s probably a folder somewhere containing more paperwork than anyone should have to look at in one sitting.
But do you know who still has keys? Has the tenant been told where rent should go now? Is that old water heater actually fine, or did everyone just keep calling it “serviceable” until the sale went through? Well, that’s basically what the first 90 days are for. You’re figuring out what you actually bought, not just what appeared in the listing, the inspection report, and the financial projections.
Actually, here, this is the period when getting organized is easiest. It’s just harder the longer you wait, and besides, here those closing documents will eventually get harder to find. Which is why it’s better to try to take care of everything beforehand.
First, Who Still has Access to this Place?
Well, you’ve got the keys, but that doesn’t necessarily mean you’ve got all the keys. Alright, so the previous owner may have handed copies to contractors, cleaners, property managers, relatives, or tenants who moved out years ago. There may be garage remotes, gate codes, storage-room keys, alarm details, and smart-lock access that nobody thought to include in the nice little handover envelope. Actually, that’s very rarely the case here.
But for a vacant property, changing the locks should happen quickly. If tenants are already living there, local rules and notice requirements still apply, of course, so this needs to be handled properly rather than turning up and changing things with no warning. But yeah, access still needs reviewing. Again, it’s a major mistake property investors make, so just be sure to check side entrances, mailboxes, utility rooms, shared spaces, sheds, gates, and anywhere else somebody could get in without using the main front door.
And if the security code is still the property’s street number, please change that too.
Read the Leases Again
You probably read every lease during due diligence. Well, hopefully. But it’s worth going through them again once the property is actually yours, because the details hit differently when you’re now responsible for sticking to them. And there’s going to be plenty of things that will need to be questioned here too.
Like, what rent is each tenant paying? When does each lease end? Who pays for water, lawn care, pest control, or minor repairs? Is somebody using a garage, parking space, storage area, or appliance that isn’t mentioned anywhere? Are there pet agreements? Has the previous owner promised something in an email that never made it into the formal lease?
And of course, none of this means hunting for problems or immediately trying to change every arrangement. Honestly, good luck with that. But instead, it’s more about knowing what’s already happening before a tenant says, “The last owner always covered that,” and you’ve got no idea if that’s true.
You Need to Know about the Taxes
Tax planning can feel like something to deal with when the return is due, but that’s usually when everybody starts searching through old emails and asking who has the final settlement statement; hence, why you need to try to take care of this ASAP for your own peace of mind here.
Alright, so the first few months are a better time to ask questions. How will the building be depreciated? Which closing costs need to be tracked? How should renovations be documented? What could happen tax-wise if the property is sold in a few years? If the property qualifies, a tax adviser may also discuss real estate cost segregation while the purchase records, plans, invoices, and property information are still relatively easy to gather.
Of course, a larger deduction now isn’t automatically the right move for every investor. The holding period, tax position, future sale, and possible depreciation recapture all need to be considered. But it’s far better to have that conversation early than learn later that useful records are missing, which, well, ideally, you try to avoid that situation if you can.
Just Walk Through it Without Thinking Like a Buyer
Now, everyone out there is probably guilty during a viewing; it’s easy to notice the attractive parts and mentally file the rest under “can deal with that later.” You like what you see; you know others will; that’s clearly all that matters here. So, the numbers work, the location works, the rental demand looks decent, and the roof apparently has a few years left. Fine and dandy, sure. Now walk through the property as the person paying for it. Meaning, you’ll need to check water pressure, the condition of the seals in windows and showers, the fencing, the heating and cooling, well, everything someone needs to live there nicely and comfortably.
Also, take photos, including photos of things that look completely normal. You’re creating a starting point, which can help later with insurance, maintenance, tenant damage, renovations, and basic record-keeping. You won’t remember the exact condition of every wall, floor, fitting, and outdoor area a year from now. Nobody does. But give this an inspection; that’s the goal here.
The Tenants Already Know Things You Don’t
Well, yeah, obviously, tenants don’t always have the full picture, and some complaints are going to be more urgent in their minds than they are in reality. Still, long-term tenants often know a property in ways a new owner can’t yet. For example, here, they know which gate sticks when it rains, which drain backs up first, which outside light keeps failing, and which repair was promised three times but never completed.
They may also be nervous about the sale, especially if nobody has clearly explained how rent, maintenance, and communication will work now. Sometimes, they have to leave; sometimes, well, in some areas theres tenant rights so they can stay. It just depends here. But introduce yourself, get to know them, and get to know some of the issues the house has.
