Ownership June17th - Letter to Tenants

[Mike Hoefling]

I will be taking ownership of my 4-unit property on July 17th (This Monday) and would like to send the tenants a letter stating that I am the new owner, where to send rent and such things like that. All the tenants are month-to-month so I want to change the leases to annual leases but want to send that letter/information at another time. Also I was wondering if it makes better sense to change the leases all at once or stagger them by 1 month each.

Any advice is greatly appreciated.

Mike

[Ann Bellamy]

Mike Hoefling, I know from experience that the best way to clear out a building is to change all the rents/leases at the same time. And to make matters worse, some tenants may want to move into a smaller unit, thereby creating a turnover in the unit that they move into, and a turnover in the unit they moved out of. Of course, they won't tell you they want to move into the smaller unit until you've renovated it. (And I thought I was so smart!)

Since tenants are your most important asset, I like to make an appointment with the tenants and sit with them personally. I get to reassure them that I am not cleaning out the building and making them move, that I in fact value good tenants and want good tenants to stay. I can present the lease and answer any questions. It gives them a feeling of security that I, as the new manager, will be taking care of the building.

I also get to see how they keep their units, and ask about any deferred maintenance items. You don't want the toilets running and the shower dripping, it will cost you money. You might also get the dirt on the other tenants, even if you don't want to know. But at least you might get the heads up if you have a noise or drug problem. Or alternatively, you might have just found out who the complainers are.