Notify Tenants of Sale?

2 Replies

What is the etiquette for notifying tenants of the sale of a property?  For reference, these are single family rentals, some rented Section 8 and some not.  Some tenants in a regular lease and some month-to-month.  

Do I wait until after the due diligence period, after closing, etc.?  I have no idea what the new owners intend to do with all the properties.  It is an investment company and when I googled them they have rentals but they also do rehab flips.  Not sure what their intent is for these.

@Amy E. I can not directly answer your question, as I have never sold a property. However, I went to an open house a few weeks ago of a 5 unit building. The realtor met us on the sidewalk and told us not to tell the tenants that the property was for sale and which units we could look into. As soon as we walked up to the building there was a man standing outside who immediately asked us what we were doing there. Haha. I was caught off guard so I just told him we were here to meet someone and walked past him up the stairs. I am looking forward to hear what folks have to say about this because the tenants had to have known the property was for sale. There was a realtor and random sets of people walking in and out of the apartments, looking around. Anyways, thanks for posting the question.

In most states there will be a law regarding this. Typically it would be the sellers responsibility not the buyers. Many states offer tenants a first right of refusal. 

As a buyer you obligation is to honor any curent leases. Make sure you know what those leases are in advance. Also you are entitled to get the security deposits at closing. It wom't be your money but you will be reposnsible to the tenant for it when they leave.