Lease Transfer and Cash-Paying Tenants, Payment Options

Investor · Denver, CO · Member since 2014 · 6 posts · 5 votes

I am under contract (closing 5/22) on a quadruplex in Austin, TX. Cash deal, using a wholesaler. All four units are occupied and the tenants are currently paying their rent via cash in person. I clearly do not want to continue that for a variety of reasons. What would be the best and smoothest way to transition the tenants to a different payment option? I would also like to protect my identity and I am filing a Wyoming LLC to manage a Texas LLC. So, I obviously don't even want to give out my personal address.

The tenants are low-income and may not have banks. Money order? Payment service?

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Corby GoadeBusiness Member

Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes

There's no reason a tenant can't pay using a money order or electronic transfer. If they don't use banks, that's their problem, don't make it yours.

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Claudio Garcia Zuniga
Member since 2024 · 20 posts · 9 votes
2y
Are you based in CO and the quadplex in Austin, TX? If so, how will you go about managing your property?
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Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
2y
Send a tenant notice letter signed by the seller at closing, this will instruct the tenants to pay a new way and that their lease is assigned to the new LLC.
We can help form your structure!
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Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
2y
There's no reason a tenant can't pay using a money order or electronic transfer. If they don't use banks, that's their problem, don't make it yours.
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