Joeski Trotter posted 9 months ago Hello Bigger Pockets community, We are new to this community and look forward to advice and eventually contributing. For now, we are looking for information. My partner and I recently purchases our first 4-plex. We would like to know how to properly transfer the leases from the tenants to us so that we receive the rents from now on. Any advice will be much appreciated! Thank you, Joe and Wendy.
Cassi Justiz Rental Property Investor from Edmond, OK replied 9 months ago Hey @Joeski Trotter , So most of the time you will have to honor the current lease terms of the leases. What I would recommend is to send each tenant a letter with instructions on where to send their rent and an effective date. If you are doing an online payment option, you can explain that as well. You'll also want to include any specific instruction like maintenance requests instructions, etc. If your tenants are on month to month leases, then you can give notice and start changing over the leases to your terms.
Andrew B. from Rockaway, New Jersey replied 9 months ago There is no need to transfer anything. The old landlords signature is equally as legally binding as if you had signed it. This is because the tenant's leases transfer to you with the property. This makes me think you have not done enough research into your state's laws. You need to get on that ASAP. Print a copy and keep it next to your bed if you have too.
Joeski Trotter replied 9 months ago Well before anyone goes on assuming things, let me reframe they question. How would you recommend approaching the tenants about the change in ownership? I have an idea of how I would approach it, I’m just looking for advice from a community who has experience in this arena. I do plan on using online payments (thank you Cassi) and I am fully aware that the leases transfer with the property. I would just like to hear how others have dealt with this. Thanks.
Cassi Justiz Rental Property Investor from Edmond, OK replied 9 months ago @Joeski Trotter , I literally did exactly what I mentioned above when I bought a property with tenants in place. I contacted the tenants in every method that I had from the property manager including call/email/mail/posted letters on their doors to let them know where to mail checks and how to set up online payments. The property manager did not have current information for one tenant. So that's why I ended up resorting to the letter to the door with a P.S. Please call me so I can get your contact info. It took about 6 weeks to get everyone on the same page, but once we got it all set up it's been fairly smooth since then.