Inheriting a tenants lease

[Philip Mullinax]

Hey guys, I'm in the process of purchasing a fully leased quadraplex.  My question is although I know I have to honor the existing leases, do I need to write new leases with the same terms instructing tenants of the change in ownership and the new payment process?  The previous landlord actually has her bank account listed in the existing leases as the payment method.  I appreciate any insight.

Thanks,

Philip

[Jeremy S.]

Probably best to knock on doors and introduce yourself (or your property manager) and provide a welcome letter.  The goal should be to make sure everyone knows where to pay rent and who to contact for maintenance.  This is also a great opportunity to try to set all tenants up on electronic rent payments, it will make life much easier.   

As for rent collection sites, it really depends on the size and scope of your operation.  I have heard of Chase Quickpay and Paypal being used with good effect for a couple of units.  If you have a larger portfolio your property management software will probably have a way to take electronic payments (most likely by setting up a separate merchant agreement).  Alternatively you can reach out to your bank and see their options on accepting ACH payments to your account.  I would try to avoid credit cards as fees are obnoxious (~3%) and stick to ACH payments if possible.