Transitioning Existing Tenants to New Management.

[William Selig]

I am acquiring my second rental property hopefully soon in the Cleveland area.  I was just wondering if anyone had any good tips on transitioning the tenants into our new ownership/management. 

The last property we did this with went poorly.  We had to evict both tenants.

[Filipe Pereira]

Congratulations on your second acquisition @William Selig! Good on you for not throwing in the towel after having to evict two tenants at your first place. I'm not sure the size of your new purchase, so not all of this advice might apply, but hopefully there is something of value here for you. 

When I buy a property with existing tenants, or take over the reigns as a property manager, I always strive to do the following:

-Personally deliver a customized letter to each tenant explaining all the details - who / where / when rent gets paid (and how much), general house keeping rules, and any significant changes between prior and current ownership or management. I will typically run through this with the tenant before giving them the letter, so their attention is on me, not the paper. 

-I try to do some type of improvement to the property within the first 2-3 weeks. When a tenant comes home to find out they have a new landlord, often times the first thing in their mind is "oh great, let's see how bad this slumlord is going to be". I like the "kill them with kindness" approach. Show them that you will provide a quality, clean and safe living environment. 

-Try to swing by one or twice a week for the first few weeks. They might not have questions for you the day of, but some might develop in the mean time. I have found that tenants often won't go out of their way to call/email/text, but if they "bump" into you at the property, they're much more likely to say something. 

Maybe when you have a chance you can tell us why you had to evict the prior tenants? That might shed some light as to what areas we can suggest advice for. 

Happy investing and good luck!