Considering a small commercial unit that already has a tenant running a business there. The idea of immediate rental income sounds nice, but I don't know what to actually check about the existing lease before I buy into it.
Read the actual registered lease deed, not a summary from the seller — check the remaining lock-in period, the notice period for either side to exit, whether rent escalation is built in and when, and whether the deposit the tenant already paid transfers to you or stays with the current owner. Confirm the tenant's trade is actually the one on their license and that they're not in arrears on rent, ask for recent payment proof. A tenant who's been there years with a clean payment history is worth more to you than the headline rent figure alone.
Didn't even think about the deposit transfer question, will raise that specifically.
Also ask why the current owner is selling if the tenant's this good — sometimes it's unrelated, sometimes it isn't.
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