How to contact inherited tenant?

Question

Hey guys, I closed on a townhouse on Friday, and the RE agent was supposed to be my property manager to deal with the inherited tenants. Long story short that isn't working out. So, I am on my own with this for now. Also I am out of state for the next 3 months(property is in Indianapolis and I am in San Diego CA). I was given a copy of the current lease between seller and tenant, and I have the tenants phone number. Do I just call tenant and tell them that we need to sign a new contract? They are on a month to month lease that ends on the first. Or should I send a certified letter instead of calling? Thank you!

Everett Fujii · Answer

Depends on what you want to do with the tenant.If you are just looking to reach out and get them to sign a new lease agreement, then call them. Be prepared to provide proof that you are the new owner though. Get their email, that's the easiest way. I would also, however, send a certified letter letting them know what they need to. I.e. who to write the rent checks to. That way you protect yourself from never answering or just lying and saying they never talked to you.

Everett Fujii · Answer

I'm not familiar with Indiana, but you should be able to just send them notice (and proof if they request it) that you have purchased the building and you can have them sign an addendum that says the new owner/landlord/leasor is X and that all rent checks need to be made out to X. You shouldn't need to draw up a new lease unless you want to change the terms from a MTM to something different. If you just want to change some terms (leasor name, types of payments taken, etc.) then an addendum should suffice. Again, I don't have experience in Indiana so I don't know if there are any rules or regulations which dictate this type of stuff. I wouldn't imagine there are, but I've seen enough wacky stuff that only applies to one state/county/city that it wouldn't suprise me. If they don't sign anything then I would let them know that you are giving them notice that you will not be letting them renew their MTM lease. This should get them to wake up and realize they need to sign it. But I would also stress that you need to be prepared to prove you are the new owner. Trust goes both ways. In my experience the absolute vast majority of the time I've had to do this a simple letter stating the new policy (who to make checks out to, when to drop it off, when it's due, etc.) is more than enough.

Account Closed · Answer

Ok thank you so much for all of your help! I will make sure I do everything legally to Indiana standards but now I have a general idea of what needs to be done, I really appreciate it!

Account Closed · Answer

Also one last question, what are my options if they don't want to sign anything etc? (Don't know why they wouldn't but just want to be prepared). I just don't want the seller to continue receiving the rent checks and there is only 11 days until rent is due again.

Account Closed · Answer

@Everett Fujii thanks for the quick response! I really just need the lease to say who to send the rent to... The rest of the lease is fine for me. So do I need to draw up a whole new lease? Or can I just have them sign an addendum saying to send the rent to me?

Joel Wilmoth · Answer

JoshuaWhat you are describing can simply done with a notice. Send overnight with a receipt request. Then go to work on changing to your lease.If the tenant does not cooperate in signing a new lease, check the lease and see if it has a month to month holdover rate and enforce that amount for September. I find many owners fail to collect the holdover rate when the lease is up. Lastly, why not utilize a local property manager? The cost is less than the headaches and worry you are now experiencing.

Deanna McCormick · Answer

Download the landlord tenant laws for the state your property is in..On a month to month notice,, you are required to give notice prior to the end of the month.. So for October 1st if you want to introduce a new lease.. You would send written notice to tenant that they would need receive by and before August 30,, to inform them with proper notice 1 month, 30 days that thier lease will change effective October 1st.. BUT this give's them very little time to consider if they want to stay or leave.. as they would have to return the notice that same day if they wanted to give you proper notice they are vacating.. I always send my notices out by the 15th of the month,, for month to month tenants.. As soon as you can send them the information that you are the new owners, give emergency contact information and request same back from them updated.. I would encourage you to have a local contact for them if they really have a immediate issue.

Jim S. · Answer

When I buy I request the seller notify the tenants that I (he gives my name) will be the new owner on this date. So when I call they are expecting me.