Im about to purchase an 8 unit property, my largest to date. I wanted to see if anyone had any recommendations on the best process to notify the existing tenants of the change and where to send rent.
I was thinking about having the current owner send a letter out the morning of closing with our contact info and new payment instructions.
Would love any advice / templates.
We just send a change of management letter with our contact info, previous management info, letting them know we will be by in the coming days to meet them personally (if possible) and to give them 2 to 3 ways to pay rent.
If their tenancy is M2M, we will be asking them to sign a new lease and in this market most likely a increase in rent if it merits.
I personally deliver letters on the day of closing (in the evening after closing has occurred). Allows me to introduce myself and say hello. If they aren't home, I either slip it under their door or tape it to their door and mail it as well. I want to give my contact information directly, not count on someone with one foot out the door to do it for me.
Here is the letter I use (and modify for each acquisition as appropriate):
Dear XXX, XXX and XXX:
My name is Jennifer A, myself and XXX are the new owners of the duplex located at XXX in XXX, WI.This change in ownership is effective today, December 29, 2016.The purpose of this letter is to do the following:
- Notify you of the change of ownership.If you need to contact me regarding maintenance, your lease or any other issue related to the property, you can contact me via text or telephone at XXX. Additionally you can email me at XXX. Rent for January should be mailed to XXX and made payable to Jennifer A.
- Notify you of my understanding of your tenancy.It is my understanding based upon the representations made by the Seller and the Estoppel Agreement that you signed, that you have a security deposit of $890.00.You are a month to month tenants (there is no written lease) and that the monthly rent is $890.00 and due no later than the 5th of each month.As the tenants, you are responsible for all utilities and lawn maintenance.The sole occupants are XXX, XXX and XXX. I am including a copy of the estoppel agreement for your reference.I do note that you indicated on the estoppel agreement that you have a dog.Your previous landlord indicates that there is no dog occupying the property.If you intend to get a dog (or any other pet) in the future, we need to discuss it.There will be a pet deposit and a monthly pet fee.There is no pet fee or deposit for pets such as fish and I do not need to be notified of fish.
- Provide you the following documents which will create a new written lease agreement that shows your continued occupancy and the terms of the occupancy.Please note that the new lease continues to be a month to month lease (not a year lease) and that rent is now due on the 1st day of the month.This new lease will start as of February 1, 2016.
- Residential Rental Contract;
- Rules and Regulations;
- Domestic Abuse Protections; and
- Contact Information
I will need all of this paperwork completed and returned to me no later than January 5, 2017.Failure to return this paperwork will be construed as notice that you wish to terminate your tenancy and your occupancy of the property will end on February 28, 2017.All paperwork should be returned to the address above.
- If there are any repairs that need to be me made that you are aware of, please let us know as soon as possible.Appropriate notice will be given to you of any entry onto the property.At the current time, I believe the items you noted in your estoppel have been addressed by your previous landlord, XXX.
If you have any questions or concerns, please feel free to contact me.
letter should include this.
new owners name, where to send rent to, that you will be doing inspection of apartment on XXX date with a condition check sheet. Include a New updated contact sheet for them to have ready with next rent payment. List your number for emergency maintenance / lock out contact.
Also should be posted in front entry.. your contact info and emergency info.
And the Hi I'm your new landlord look forward to working with you..
This post has been removed.
Download you state landlord tenant laws so you comply with notices..
A m2m lease still requires proper notice period for you to change rent rates..so notice would be prior to 1st of upcoming month for rent increase to start after that full months time..
@Jay Levy I just went through this and created my own template (below). In addition to hand delivering it and speaking with the tenants in person the day of closing, I also tried my best to meet them about two weeks before closing. I made sure to make the letter thorough while letting them know we are serious landlords:
As of DATE, your residence is now managed by COMPANY NAME. The management change should not have a significant affect on your tenancy; however, there are a few items that need to be taken care of during this transition.
As of DATE, please:
Make Checks or Money Orders Payable To: COMPANY NAME
Mail To: COMPANY NAME
Rent is due on the 1st of every month and the next payment is due MONTH 1, 2017 in the amount of $$$. If rent is not received by MONTH 5, 2017, we will begin the eviction process on MONTH 6, 2017.
We need to have a current lease on file and will need you to sign a new month-to-month lease with us if you would like to continue to rent your home.
Additionally, we need to access your residence to determine the condition of the property and its major systems. Please give our office a call (PHONE NUMBER) or send us an email (EMAIL ADDRESS) upon receipt of this notice to schedule an appointment as soon as possible.
Our goal is to make this management transition as seamless as possible for you. If you find any issues or would like to give us feedback, we would love to hear from you on how we can improve in the future. Send us an email at EMAIL ADDRESS or give us a call at PHONE NUMBER.
If I can be of further assistance, please feel free to let me know.
All the best,
@Jay Levy One more thing, this was my first time buying houses that already had tenants in them. I felt uncomfortable making first contact as I was unsure whether they would believe me and think I was trying to scam them or what. BUT I must say, it went well. We've received our first rent payments smoothly and I'm very happy about that. I think the key, especially in situations like this, is excellent communication. Also, you must be firm with them as you don't know how well they were "trained" by the previous landlord. Letting them know we have every intention to file for eviction by the 6th let them know we expect to be paid or they can expect to leave.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing