Tenant Notification New Ownership and new Payment method

[Morgan Gruelle]

Hello, 

I purchased a triplex back in July and just signed a 6 month contract with the management company that was currently managing the property. Up until now they have been collecting the rent every month and transferring the funds to me every month so far. It has been pretty hands off for the most part aside from some minor maintenance items i have completed for 2 of the tenants. My contract with the management company is up this month and i should be receiving my final payment from them within the next week. Starting january 1st 2020 I was planning on managing the property myself and using either avail or cozy to collect rent and make listings etc. What I am not sure about is how to go about transitioning from using a management company to managing the property myself. More specifically how to notify the tenants of the changes, what exactly do i tell them? I assume they don't really need a ton of details on the situation.  How do I notify them? Should I just put a letter in their mailboxes? Should I go over and introduce myself and speak with them face to face about it? Are there any other things I should be considering for this transition? Honestly I am not sure how to go about this and having to take this on fully without the management company is making me really nervous even though there hasn't been much to do so far durring my ownership. 

[Matt R.]

I would write them a letter and meet them in person.  If you can't meet them in person soon, write and send the letter as soon as you can; if you can meet them in person (say) this week, write the letter and then give it to them in person.

The letter doesn't have to say a lot, other than the new way they should pay rent, and that they should get in touch with you if there is a problem.  Maybe something like this:

"I am taking over the management of the property at 123 Main Street.  The method of making your rent payments will change, starting with the payment due on January 1, 2020.  You should now make checks payable to Morgan Gruelle, and mail them to PO Box 567, St. Louis.  Alternatively, you can pay electronically, through the website Cozy.co (or Zelle or whatever).  I will contact you in the next few days to discuss the electronic payment option.

The rent amount and rent due date have not changed.  The lease terms have not changed; your current lease is still valid, and expires on (April 30th, 2020 or whatever date).

Starting January 1, 2020, if you have a maintenance request or another concern, please call or text Morgan at (phone number), or email (email address). Before January 1, you should contact XYZ Property Management, as you do now."

When you talk to them in person, they may ask if you're selling the building, or getting ready to kick them out, and things like that.  Have an answer ready if they ask.

If you've got copies of the leases they have now, see if there is any language in there about changes to the payment methods, etc.  Sometimes there is a requirement for an advance notice of changes.  If that notice period is more than about 20 days (as of today), you technically can't yet change something that will happen on the 1st.