Purchased Duplex- Do I have tenants sign new lease?

Question

We just purchased a duplex.  I will be reaching out to tenants tomorrow.  I was going through the existing lease agreement and I see that it seems appropriate that I change the new Owner name to our LLC and have the tenants sign the same lease term but with our new name as the agreement.

I know this might be a dumb question to you all.... but am I thinking correct?  I would rather them sign a new agreement with same contract then have an addendum written up.

Let me know how you handled this.   Also, did you just call the tenants and ask when you can meet them... or just show up at the door as the new owner.?

Thanks,

-Marty

Curtis Bidwell · Answer

when we have purchased occupied properties we send a letter to each resident letting them know of the transfer of ownership, new name and mailing address, contact info for maintenance/repair issues, and how rents are to be paid (mail, onlineu, etc).its good if the previous owner also participates with a notice of transfer but it’s not necessary.  they generally know by this time after inspections, appraisals, etc...

I had a tenant who moved out several months after we took over her complex.  She left a mess and damages and we deducted that from her deposit.  She sent a demand letter for the rest of her deposit because she “didn’t have a contract with us.” We sent her notice that we didn’t just purchase the building but the contracts as well.

John Woodrich · Answer

Not how contract law works.  Don't worry about it.

Marty Summers · Answer

@Nathan G.   I like you idea the best...thank you!

Nathan Gesner · Answer

The current lease transfers with the sale of the property. It's not necessary to sign a new one because the old one remains in effect with you as the new owner.

Don't make things more complicated than they need to be. If it makes you or the tenant feel more comfortable, simply write a pen-and-ink change at the bottom of the lease that says you are the new owner and that the terms of the original agreement remain in effect. Both of you sign it and live happily ever after.

Marty Summers · Answer

@John Woodrich  Thanks.... it just does not make sense if something legal got sticky that they could say that their lease term is with a different company...which is not mine.  I never thought this basic question through....interesting.

John Woodrich · Answer

@Marty Summers the name on the lease doesn't matter.  They have a right to occupancy with the old lease, you just happen to be the new owner.  If they are on month to month leases sure, you could have them sign a new lease with your name but it is not needed.  Wait until the end of the lease and present you new lease with new terms, if any.

And to answer your other question - nobody likes a random person showing up at the door.  Send them a letter letting them know you are the new owner.  If you want to update the lease because they are on month-to-month mention you want to make an appointment with them.

Marty Summers · Answer

@Drew Bonner Hey Drew, that is my thought but the lease agreement is with specifically the tenant and the old owner name.  I have an electronic version of the exact lease.  Would there be a problem you think me asking the tenant to resign the same agreement but change the Owner name to our LLC?  That would be the only change.