What lease terms should a buyer review carefully before purchasing a tenanted investment property?

Review the actual lease term carefully, since whether it is a fixed term or already month-to-month affects how soon certain future steps could even be considered, and confirm the current rent and exactly what it includes, since a rent that is already below market limits how quickly your returns can improve given the guideline-based cap on annual increases. Note any deposit amount held and whether accrued interest on it has been properly tracked, since you will be taking on that obligation as the new landlord.

Also look closely for any special clauses covering parking, storage, utilities, pets, or other arrangements that could affect what you are actually able to do with the property, and check whether there is any indication of prior disputes or Landlord and Tenant Board involvement referenced in the file. Getting the complete, actual lease from the seller, rather than relying on a summary, and having your lawyer review it before you waive conditions, gives you a realistic picture of the tenancy you are taking on rather than assumptions based on the listing alone.