Inherited tenants, no rent! What do I do?

[Jacqueline Coombs]

Hi, all. I just closed yesterday on my second SFR with inherited tenants who have been there 5 years. As of today, they have not paid rent for the month ( was due on the first). We tried getting the previous management company to handle this before closing but they just said the tenants always pay but they are always late so we should expect them to pay within a few weeks. This is definitely NOT how I want to run my business! I am really surprised that a professional management company would let their tenants slide like this for months on end. I have not met the tenants yet but I am sending them an introductory letter about us taking over ownership, reiterating the rules about rent payment and where to send their check to. I am thinking I may need to include the "notice to quit for non-payment" form with the letter. How would you guys handle this situation? I appreciate any feedback you may have for me. Thank you!

[Deanna McCormick]

Sounds like your format is just what's needed. I'd also personally go over and knock on the door and ask for the payment with the intro letter, don't be shy. Did you view the home before closing do you know the condition of the interior, I'd also make a appointment to do a walk thru at this time with them to condition check sheet, so moving forward you know what damages would be their fault.

I'd also get new paperwork lease, with addendum's all prepared with you as landlord on this and have them sign a new lease once you are confident they have paid, I'd probably put them on month to month. You and choose the lease terms your comfortable with. Not sure what the paperwork you signed for at closing disclosed about the lease they currently have, I would look at the lease see if it has a clause for change of ownership and see how the terms may carry over or end.

This way if you end up in court all your paperwork has you listed as landlord and it's not confusing for anyone. Also their security deposit should have transferred to you as new owner in closing or been part of the closing fee disclosure, so you show it on account for them.