Multi Family, what to after I close?

Question

Hello BP Family

I am interested to hear what all the buy and hold investors did first when they purchase a fully rented multi family property. For instance, did you meet with the tenants the same or very next day? Did you write a letter introducing yourself and detailing where to send the rental checks? Anyone have any templates I may borrow?

David Campbell · Answer

@Raymond Hill what’s up Raymond! Nice suit btw. I really didn’t do anything to be honest haha. I had my property management company take care of all it. Make them earn their money! I bought mine fully occupied and never went to the location or met the tenants.

Anthony Wick · Answer

You or a representative needs to do a "Move In Checklist" of every unit asap. This will document the current condition for when they eventually move out. It is a "do over" for the tenant if they've damaged anything previously, but it also protects you from further damage done by the tenant. Without it, you cannot use their damage deposit for any unproven damages.

Taylor L. · Answer

Absolutely send them certified letters immediately informing them of the change and who they will be paying rent to now. One of my friends closed on a property mid-month, informed the tenants, then the next month the seller still went around and successfully collected rent from a few of them. You need to protect yourself from that potential situation.

Theresa Harris · Answer

You will want to make sure they know who to pay the rent to and contact in case of emergencies.  Send them letters or go knocking on doors with a copy of the letter.

Dj Hume · Answer

@Raymond Hill I'll DM you with a template

Lien Vuong · Answer

PM does everything. They will make the contact and collection process easy for you.

Dj Hume · Answer

We send everyone an email introducing ourselves, answering any immediate concerns, and what to expect in the coming weeks. We then walk the property and meet everyone and inspect each unit to address concerns. This process helps us build a relationship but also be transparent with upcoming changes.

Keep in mind, no one likes change, so expect 50% to leave in the coming months, but that's okay! You want to build a great community that doesn't complain about you, the property, and how things suck compared to the "old" days.

Hope this helps!

Charles Carillo · Answer

@Raymond Hill

We send letters for the introduction. Include all of the property manager's information. Unless you are living in the same property, or will be actively managing all yourself. Most of the time you don't want people to know you own the property.

Brian Jansen · Answer

I am in the same position... wondering if someone might share their template?

Raymond Hill · Answer

@Dj Hume is there anyway you can send me a template on the email you send to the tenants?

Multi Family, what to after I close?

Most Popular Reply