Sending introduction letter to new tenants.

General Landlording & Rental Properties

Sending introduction letter to new tenants.

Investor · Kennesaw, GA · Member since 2018 · 98 posts · 127 votes

I'm about 2 weeks from closing on a 3 duplex deal. The other real estate agent has been a real pain to deal with this entire process, mostly due to her extremely slow response time (to the point where I think she's sandbagging on purpose to run out the clock on some dead lines).

We wanted to send an introduction letter to the new tenants explaining who we are and giving them a heads up management would be changing. Along with the introduction, I created a tenant information sheet that just asks for basic info (name, phone number, email). The other agent / current owner will not, or can not, provide us with anything more than the names of current tenants. The tenants are currently mailing checks to pay rent, but we want to set them all up for electronic payments and I need their email to send them an invite to TenantCloud.

We let the other agent know that we are planning on sending this letter and she said she doesn't think the current owner would appreciate that. Her phrasing makes me wonder if she even asked... So the question is, is sending an introduction letter / info sheet going to create any kind of legal issues? or is she just going to be butthurt? I only care about one of these outcomes.

Thoughts and ideas are greatly appreciated.

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Member since 2018 · 2k+ posts · 1k+ votes

5y

@Michael H. Do you have copy of the leases? You will have to honor any agreement. Do you have an estoppel agreement signed by the tenant and verified by the landlord that everything is correct. Monthly rent, deposits, any verbal agreements, etc.

If I owned this property I would not want you contacting my tenants. There is always a chance you won't close. When you close you can then send your letter.

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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y
Originally posted by @Nicki Shelton:
@Joe Splitrock So would you get the lease agreements from the prior owner. Generally when are those expected? Thanks four your help I am still learning.

I would get copies of those prior to closing. It is good to even write it into the purchase agreement, that seller is to provide copies of all lease agreements. As a buyer, you are bound legally to those agreements, at least until they expire. You are essentially buying the leases along with the property, so you have a right to get copies.
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Nicki Shelton
Fort Worth, TX · Member since 2021 · 92 posts · 32 votes
5y
@Joe Splitrock thanks for answering👍
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Scott M.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
5y
@Michale A lot of could of/what of/should of for you to learn on the next deal and everyone who reads this thread to consider for their next deal. Along with the estoppel letter we put in our PA’s that the landlord (be it the seller or previous management co) will provide us with this info at close along with a owner/management transfer letter at close or before. That way, we have something in writing to show the tenants. If it isn’t done, we don’t have to close.

That said, we manage hundreds and hundreds of doors and as such we take over management from other “Bad” companies all the time and they rarely corporate.

If you have tenant info call/email/text and always door knock and leave a package for each tenant that has your intro letter and other doc’s like the estoppel or the goodbye letter if you have them. Letter should be friendly but give them X days to contact you, a deadline is a must and it should be short. Then if you do not hear from them have your attorney, send them a 30 day notice along with a letter that says hey, we don’t want to kick you out but you have not responded to our requests, please call. This gets all but the most stubborn tenants to call.

@Nicki the best time to close if you have an agent/seller/management co who isn’t corporation is the middle of the month. More on the earlier then the later middle. Not the beginning and not the end. You want the current month rent to be prorated on the closing doc’s. This gives the tenant enough time to pay the current month and you enough time to make an introduction. Just last Friday, April 29th a client transferred a property to us out of the blue, could not be a worse time to transfer a property!

Keep in mind some tenants see a change in management a great time to test the boundaries. Don’t let them. You can be the nice guy, let your attorney be the bad guy and do not be shy about this. You have a small window to let tenants know you’re the proper person to be talking too.

Also, remember, for tenants this can be a scary time. Especially with 4/5 being on month to month. And when people get nervous they turtle. If you show them some compassion and tell them upfront you want them to stay as tenants that may help too. Help calm their nerves….your lawyers should too in the letter they send by saying the same thing. Your goal is to establish communication and a new lease, not evict, but you need to set a deadline etc….
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Nicki Shelton
Fort Worth, TX · Member since 2021 · 92 posts · 32 votes
5y
Originally posted by @Scott M.:
@Michale A lot of could of/what of/should of for you to learn on the next deal and everyone who reads this thread to consider for their next deal. Along with the estoppel letter we put in our PA’s that the landlord (be it the seller or previous management co) will provide us with this info at close along with a owner/management transfer letter at close or before. That way, we have something in writing to show the tenants. If it isn’t done, we don’t have to close.

That said, we manage hundreds and hundreds of doors and as such we take over management from other “Bad” companies all the time and they rarely corporate.

If you have tenant info call/email/text and always door knock and leave a package for each tenant that has your intro letter and other doc’s like the estoppel or the goodbye letter if you have them. Letter should be friendly but give them X days to contact you, a deadline is a must and it should be short. Then if you do not hear from them have your attorney, send them a 30 day notice along with a letter that says hey, we don’t want to kick you out but you have not responded to our requests, please call. This gets all but the most stubborn tenants to call.

@Nicki the best time to close if you have an agent/seller/management co who isn’t corporation is the middle of the month. More on the earlier then the later middle. Not the beginning and not the end. You want the current month rent to be prorated on the closing doc’s. This gives the tenant enough time to pay the current month and you enough time to make an introduction. Just last Friday, April 29th a client transferred a property to us out of the blue, could not be a worse time to transfer a property!

Keep in mind some tenants see a change in management a great time to test the boundaries. Don’t let them. You can be the nice guy, let your attorney be the bad guy and do not be shy about this. You have a small window to let tenants know you’re the proper person to be talking too.

Also, remember, for tenants this can be a scary time. Especially with 4/5 being on month to month. And when people get nervous they turtle. If you show them some compassion and tell them upfront you want them to stay as tenants that may help too. Help calm their nerves….your lawyers should too in the letter they send by saying the same thing. Your goal is to establish communication and a new lease, not evict, but you need to set a deadline etc….

So helpful thank you Scott!

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