Is there a tried and true method to ensure that the current clients know who to send their rent to, after the the new owner of a MHP takes possession?
I tried to search the forums, but didn't come across anything relevant, so please pardon me, if I missed it.
Not really a decent foolproof method because even if you were to change the method of how you collect rent at this point it would still be a change, it is just something that both you and the new owner need to be aware of for the first month or so.
Is this for a larger property, or just a 2-4 plex? If it's small, I would think contacting the tenants individually and explaining to them you're the new owner, and the new rent payment and notifications process would be quick and easy. If it's a large complex, how about an official letter placed in each one of their mailboxes?
I just went through this with a smaller MH property I bought with three homes. All tenants were previously paying cash to the prior owner who would stop by each month to collect rent. I had the tenants all sign my lease form and included a separate page detailing that rent now had to be paid via check or money order and mailed to my PO Box. About a week before first rents were due to me I sent them all a reminder letter of the change in method of payment and who to make the payment out to.
Worked great!...all three tenants complied. On a bigger park I'm sure it will take a little more effort, but same system should work.
what I would do is choose a rent collection method, type a letter describing the new way to pay and how to pay it (describe when it’s due and when it’s considered late, what’s the late fee, check only, no cash, any pertinent info), print it out, find an on site property manager, have him/her post that notice on every tenants’ door, then watch the money come in. You may need to be flexible with this in the beginning.
Hope that helps!
I hand deliver a letter and leave it in the door if nobody is home. All the info they need and nothing they don't:
August 2, 2018
To all occupants of:
123 Main St
Anytown, ME 04401
This building has been sold and the new owners have hired ACME Property Management to manage the property. Effective immediately all rent payments should be in the form of a check or money order, made payable to "ACME Property Management LLC" and mailed to:
ACME Property Management
PO Box 123
Anytown, ME 04401
Please be sure to include your address with each payment so that it is applied correctly to your account.
You can also hand deliver rent to our office located at:
321 Main St
Anytown, ME 04401
Cash payments will not be accepted under any circumstances.
All maintenance and other issues will be handled by our office which can be reached at (555) 555-5555.
All current rental agreements will be honored until such time we can review each one to make changes as necessary. We appreciate your cooperation during this transition and aim to make it as seamless as possible.
I think mr. Murdock pretty much nailed it...
Thanks for all the great ideas and responses. @Ryan Murdock , thank you for the example letter also.
Background: This is for a small 14 unit MHP.
Thank you for your help! That was just what I was looking for. Straight forward and to the point!
@John Beck Excellent question! We are navigating this currently, as we should be going into contract with our first duplex this coming week. Please give hugs to the girls for me!
@John Beck Looks like you've had some great feedback from other investors here. I would definitely second what @Gulliver R. said in his post and just make a "new owner" letter to the tenants when you close on the park. You can have a general statement of the change of ownership and go over the new payment method, due dates, etc. Similar to what @Ryan Murdock posted. This could also be a good time to be clear on any changes in park policy or rules in that letter, but be concise and only include what is necessary.
Since it is a small park you could hand deliver it to the tenants and for larger parks mail them to tenants or have your on-site manager deliver them. Congrats for your new acquisition!