First time buying a multifamily - Process of getting tenants to pay me?

3 Replies

So once I purchase the property (or prior?) what do I do to get the tenants to start paying me the rent instead of the older landlord? Do I draw new leases up with each one (they are already on leases) or just tell them the new address to mail it? 

What about inheriting section 8 tenants? Does it take a while to have them start writing me checks? reinspection?

Are you managing your own property? If so send the tenants letters introducing yourself and who and where the rents are being made and send to. Whenever the leases expires, give them new leases. 

Their lease will remain valid, regardless of the ownership.  You should get partial rent at closing (for the days of the month of closing you own the property).  You'll have to quickly introduce yourself upon closing and let the tenants know how to submit rent going forward.  You may get some tenants playing games (Oh, I mailed it to the other LL) so you'll have to keep a solid relationship with the previous owner for a month or two until the new routine kicks in.

You can try to get them to sign new leases upon the sale but they are under no obligation to do so.

Sorry, I'm not familiar with the Section 8 rules to help you on that front.

You an introductory letter and get estoppel agreements if they have leases. They essentially amend who is paid and  quantify the security deposit that is transferred.   For the security deposit it is good to have agreed what was transferred to you.

Also after sale meet with each of them to re-iterate the terms of the lease and make sure you have the old lease in your possession.

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