Transitioning Ownership and Payment Sytems

1 Reply

This is my first investment deal. 

I am in the process of acquiring a small self storage property consisting of 26 units from my parents. The rates have not increased in 14 years.  Rent collecting, and paying is inconsistent. I am looking for help in 2 specific areas right now. 

1. Example letters explaining ownership change and rent increases. What has or hasn't worked well for you? Phrases to use or not to use? etc...

2. Transitioning all tenants to an automatic payment system. I have looked into Cozy, but I would like to know of other platforms that would work well for such a small self storage facility. 

Thanks so much in advance for any insight anyone has to offer. 

Hi Michael. My wife and I have been using a website called Tenant Cloud. It's very similar to Cozy sound like. We have the ability to let our rental tenants pay their rent online via PayPal, Stripe(Credit Card), or what most people do is use their ACH option powered by Dwolla. The tenants love it. I would imagine that it would certainly handle a storage situation. We pay a flat $9 monthly fee for processing our payments from tenants.

As far as what to put into a letter, we have purchased rental property where we were inheriting the tenants from the previous landlord. We did do an introduction letter that stated that we were the new owners, the details of when/where they should start paying rent, etc. I guess mainly just be factual and what your plans are with the terms of their lease. Good luck with the project!

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