My New Landlord Transition Letter - please critique!

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My New Landlord Transition Letter - please critique!

Nicholas Jose
Member since 2018 · 66 posts · 14 votes

Good afternoon, BP.

I've been looking at New Landlord Transition letters on this site and wanted to create one for myself. I took pre-existing ideas from other members, re-wrote them, and added my own spin to them and posted the draft below. (If you see similar wording/phrasing, it may have come from you, to which I give full credit!) Anyways, here's what I've came up with:

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[TODAY’S DATE]

[RESIDENT’S NAME]

[STREET ADDRESS]

[APARTMENT NUMBER]

[CITY, STATE/PROVINCE ZIP/POSTAL CODE]

Re: New Landlord Transition Letter

Dear Mr. [RESIDENT’S LAST NAME],

My name is Nicholas R. Jose and I am the new Landlord of the Leased Premises. As you may have been aware, this duplex was purchased by me on [CLOSING DATE], and the resulting change in ownership will take full effect today, [TODAY’S DATE]. Your current Lease and payment terms are recognized until [DATE]; however, moving forward, please send all payments, maintenance requests, and correspondence to the address listed at the top of this letter.

If you are currently using an automatic draft, cash deposit, or other form of payment to pay for your residency, please contact your financial institution immediately so as to avoid any late fees and/or eviction notices.

I have included with this letter a Tenant Update Form for you to fill out. Please complete this document and return it to me as soon as feasibly possible, for it is essential that I have all of your important information on file and up-to-date. For your convenience, several self-addressed envelopes have been provided for your use.

If you have any questions, comments, or concerns, please feel free to contact me between ##:## am to ##:## pm. My email address is [XXX], and my phone number is (###) ###-####. It is recommended, however, that you reach me through email. Finally, in case of an emergency requiring urgent attention, please contact me on my cell phone anytime at (###) ###-####.

I thank you, Mr. [RESIDENT’S LAST NAME], for your diligent cooperation during this transition period. As your new Landlord, it is my high honor and distinct privilege to provide you exceptional management, prompt maintenance, sound hospitality, and a quality environment to call home!

Sincerely yours,

[SIGNATURE WRITTEN IN PEN]

Nicholas R. Jose, Manager

++++++++

Please let me know what you think!

1Reply
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Most Popular Reply

Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y

Not so much with the letter but I'd have them fill out any additional info you need when you have them fill out the tenant estoppel form during escrow.

3Reply
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  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    Not so much with the letter but I'd have them fill out any additional info you need when you have them fill out the tenant estoppel form during escrow.

    3Reply
  • Nicholas Jose
    OP
    Member since 2018 · 66 posts · 14 votes
    6y
    Originally posted by @Aaron K.:

    Not so much with the letter but I'd have them fill out any additional info you need when you have them fill out the tenant estoppel form during escrow.

    Thank you for your feedback, Aaron. When I'm preparing these letters/documents, I'm really learning as I go. I've made the below change to the New Landlord Transition letter and will now work on the Estoppel Agreement form that will go along with said-letter:

    ++++++++

    I have included with this letter a Tenant Estoppel Certificate for you to fill out. Please complete this document and return it to me as soon as feasibly possible, for it is essential that I have all of your important information on file and up-to-date. For your convenience, several self-addressed envelopes have been provided for your use.

     ++++++++

    I've made the change from "Tenant Update Form" to "Tenant Estoppel Certificate" because a thought occurred to me: aren't these two documents the same thing?

    0Reply
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    @Nicholas Jose the tenant estoppel is usually during escrow and the deal could fall through or the closing date could change before you get to closing so I'd have it be cut entirely from the letter and then just get your info/ tenant estoppel during escrow with separate documentation.

    0Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    I have never had tenants fill out estoppel certificates. So far, I haven’t had a need. I’ve always received copies of the current leases, and request them as part of the Purchase Agreement. I would do them if I ever felt a need. But, this might not exist prior to close.

    I’d probably shorten the letter a bit. Delete the last paragraph. Just not necessary. And put a specific date on when you’d like it completed. And have them email you the form rather than providing stamped envelopes.

    0Reply
  • Sandra K Shirah
    Real Estate Broker · Pineville, LA · Member since 2009 · 70 posts · 18 votes
    6y

    As Anthony suggested, I’d delete the last paragraph and add a date to return the info sheet by. Perhaps give them an option of submitting the info to you via email or an online form -might save you a few dollars in return postage. Good job! 

    0Reply
  • Nicholas Jose
    OP
    Member since 2018 · 66 posts · 14 votes
    6y
    Originally posted by @Anthony Wick:

    I have never had tenants fill out estoppel certificates. So far, I haven’t had a need. I’ve always received copies of the current leases, and request them as part of the Purchase Agreement. I would do them if I ever felt a need. But, this might not exist prior to close.

    Although I'm just starting out and don't know too much, I would think having your tenants sign estoppel certs during escrow (as @Aaron K. suggested, to which I just learned) is necessary so as to avoid any unwarranted legal disputes. Maybe it's a personal choice, or it depends on which state you're conducting real estate business.

    Originally posted by @Anthony Wick:
    I’d probably shorten the letter a bit. Delete the last paragraph. Just not necessary. And put a specific date on when you’d like it completed. And have them email you the form rather than providing stamped envelopes.

    Originally posted by @Sandra K Shirah:
    As Anthony suggested, I’d delete the last paragraph and add a date to return the info sheet by. Perhaps give them an option of submitting the info to you via email or an online form -might save you a few dollars in return postage. Good job!

    Duly noted, I'll further revise my letter. (This is kinda fun haha.) I assume that I would have all of the tenant's information, such as his or her email address, during escrow? If so, I could probably instruct the tenants to print out the relevant documents, fill out the paper work, scan the files, and then email me their completed forms.

    0Reply
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    @Anthony Wick yeah I wish tenant estoppel was unnecessary but it just makes it easier if anything ever were to be in dispute, especially in my state.  As an added bonus tenants like to complain about what is wrong with a property, and sometimes the landlord doesn't know about the things they mention especially if they are long distance and have a PM.

    0Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    6y
    Originally posted by @Nicholas Jose:

    Good afternoon, BP.

    ........... to provide you exceptional management, prompt maintenance, sound hospitality, and a quality environment to call home! .........

     That's a key part of doing well long term.

    Good Luck!

    0Reply
  • Nicholas Jose
    OP
    Member since 2018 · 66 posts · 14 votes
    6y

    @Anthony Wick @Sandra K Shirah I have modified the paragraph in question to the below draft:

    ++++++++

    Additionally, because it is essential for me to have all of your important information on file and up-to-date, I have emailed you a Tenant Estoppel Certificate for you to fill out. Please complete this document and return it to me via email no later than [DATE]. Failure to do so ...

    ++++++++

    So what if the tenant does not return the Tenant Estoppel Certificate? Would this mean I start the eviction process?

    0Reply
  • Sylvia B.
    Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    @Nicholas Jose You really want to get the completed estoppels before closing on the property. Not only do you want the tenants' information, you also want their statement concerning the terms of the lease agreement, to be sure that it is the same as what the seller has told you. There should be questions about the rent amount, due date, lease expiration, security deposit, who pays utilities, and who owns the appliances, at least. You can either provide the information that the seller gave you, asking them to verify it, or leave blanks for them to fill out.

    0Reply
  • Nicholas Jose
    OP
    Member since 2018 · 66 posts · 14 votes
    6y
    Originally posted by @Sylvia B.:

    @Nicholas Jose You really want to get the completed estoppels before closing on the property.

    I see, I'm beginning to understand. My letter as it stands now is written after I closed on the property but before the tenant has given me the estoppel. I'll rewrite the letter to reflect this revelation.

    Okay, I just made a tenant estoppel certificate from eforms and will look to see if it contains all of the above information, and then some. Thanks for your help, it was really insightful.

    0Reply
  • Tracy Sheard Wilson
    Member since 2020 · 1 post · 1 vote
    6y

    @Nicholas Jose I would suggest putting a date on the return on the information as opposed to the feasibility phrase. I know we are in new territory these dates but that is information you need ASAP. In my opinion

    1Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    Until you have been burned by a seller you do not realize how important an estoppel is. I always recommend my clients have their attorney draft one up to have the sellers and tenant sign. You just do not want there to be any confusion about the deal points that made the deal attractive for you to buy in the first place. Leases are a great start for due diligence and the estoppel is the next step. 

    1Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    6y

    @Nicholas Jose it’s too long. You need it shorter. If my landlord sent me something like this (with the over the top “nice” overtones) is throw it away

    0Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    6y

    @Nicholas Jose don’t ask a tenant to print and scan stuff. You’ll never get it. Mail them the documents or use some online service like DocuSign

    0Reply
  • Nicholas Jose
    OP
    Member since 2018 · 66 posts · 14 votes
    6y

    So I've revised the New Landlord Transition Letter based on everyone's suggestions. When typed on Microsoft Word, the entire letter is kept to a single page. Please let me know what you guys think:

    ++++++++

    [TODAY’S DATE]

    [RESIDENT’S NAME]

    [STREET ADDRESS]

    [APARTMENT NUMBER]

    [CITY, STATE/PROVINCE ZIP/POSTAL CODE]

    Re: New Landlord Transition Letter

    Dear Mr. [RESIDENT’S LAST NAME],

    My name is Nicholas R. Jose and I am the new Landlord of the Leased Premises. As you may have been aware, this residential property will be purchased by me on [CLOSING DATE], and the resulting change in ownership will take full effect on said-closing date. Your current Lease and payment terms are recognized until [DATE]; however, moving forward, please send all payments, maintenance requests, and correspondence to the address listed at the top of this letter.

    If you are currently using an automatic draft, cash deposit, or other form of payment to pay for your residency, please contact your financial institution immediately so as to avoid any late fees and/or eviction notices.

    Additionally, because it is essential for me to have all of your important information on file and up-to-date, I have emailed you a Tenant Estoppel Certificate for you to fill out. Please complete this document and return it to me via email no later than [CLOSING DATE].

    If you have any questions, comments, or concerns, please feel free to contact me between ##:## am to ##:## pm. My email address is [XXX] and my phone number is (###) ###-####. It is recommended, however, that you reach me through email. Finally, in case of an emergency requiring urgent attention, please contact me on my cell phone anytime at (###) ###-####.

    Sincerely yours,

    [SIGNATURE WRITTEN IN PEN]

    Nicholas R. Jose, Manager
    ++++++++

    0Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    The estoppel needs to happen first. No need to mention it in your introductory letter because the estoppel letter needs to be completed and received prior to closing.

    Much of the information in the estoppel is what your asking for in the intro letter. They shouldn't have to fill that out twice.

    The intro letter should provide all your contact info, maybe a couple of your business cards so they can stick one on their fridge. It should also contain the procedure for requesting maintenance, paying rent, rent due dates and late fees, and if you plan to raise the rent soon, may as well give notice of that too. We always schedule a walk through inspection noting repairs that need to be done soon or eventually.

    I've recently closed on some wholesaled properties and against my better judgement used the seller's choice of a closing attorney. It was really loosey goosey as far as what I'm used to. No prorated rents, prorated taxes or anything. Just made a check out to the wholesaler for the sale amount and did receive a warranty deed. Also wasn't able to purchase title insurance even though I requested it. We won't be going that route again. It was really cheap though. lol. Didn't receive either estoppel until after close. Neither tenant had a contract of any sort.

    3Reply
  • Kelly Cochran
    Investor · Spokane, WA · Member since 2023 · 31 posts · 16 votes
    3y

    Love this thread. We just closed on a duplex with one existing tenant, and this is the first time I'm hearing about an estoppel. What do I do if no one told us about this/ had tenant sign one?

    0Reply
  • Leon Jamison
    Rental Property Investor · Jersey City, NJ · Member since 2021 · 9 posts · 0 votes
    2y
    Quote from @Kelly Cochran:

    Love this thread. We just closed on a duplex with one existing tenant, and this is the first time I'm hearing about an estoppel. What do I do if no one told us about this/ had tenant sign one?


    Hi Kelly! Checking in to see how you handled this? As I just closed a triplex and want to consider the best approach when sending my Introduction letter. Thanks!
    0Reply
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