Do I let Tennats know of new owners?

Question

Hey, I’m selling my rental properties with tenants still in it. Other than what the contract already says about tenants being fine with any changes of ownership, should I still state that their is a new owner through a different document, if so what kind?

Kenny Dahill · Answer

@Kelley Phan, look up your local regulations.  Some states have this procedure already detailed.

If not, I would be proactive telling the tenant AFTER the closing.  It's important to tell them:

• New landlord/manager contact info
• Their lease remains intact.  However, new LL/PM might require an addendum to switch out ownership details
• The new LL/PM must honor their lease
• Their security deposit is being returned or transferred

Cassi Justiz · Answer

Some states may have a formal document that you can look up, but I don't know of anything off the top of my head. When we recently purchased a home with tenants in place, the former property manager sent a typed up letter that essentially said effective this date, the property has been sold to a new owner and will no longer be managed by said company. Your deposit and pro-rated rent has been transferred over to new owner along with all lease documents. Your current lease will be honored through x date. New owner and/or property manager will be contacting you with info on where to send all future rent payments.

Christine Kankowski · Answer

I would imagine the new owners will reach out to let them know where to pay the rent, since it will no longer go to you.

If you want, send them a letter letting them know when your ownership will cease and that the new owner will reach out with the information on new management, etc.