When to initiate contact with inherited tennants.

[Craig Parsons]

So we are in the process of purchasing a 5 unit multi family property.  I'm told by my realtor that we are gonna close early the first week of November. It all comes down to the title company and how busy they are.   On Friday October 29th  I was talking to my property manager and she asked if I had phone numbers for the tenants.  I told her I did not but I had rental agreements for all of them which had the current owners number and maybe it would be best if she contacted her directly instead of playing the telephone game.  She promptly did this.  To our dismay the current owner got really indignant that we dared to call her in the first place and would not divulge that information.  Then the owners real estate agent called my PM and asked her not to contact the owner again.  And that the day before closing they would notify the tenants of the new ownership with letters on each of their doors.   Is this normal? Did we do something wrong? Should I be worried about something? The PM and I figured keeping the tenants in the loop would be a good thing and help with a smother transition.  TIA!

[Scott M.]

After you are the owner.  A lot of sellers will get bent out of shape if you talk to their tenants before the sale goes through.  While not a written rule  you or having your PM contact the tenants prior to you taking ownership or w/o the expresses consent of the owner, or doing a walkthrough etc....is seen as bad form.  

In addition it can mess up the order of things when you are dealing with rent due on the first of the month.  Now tenants may be confused (or just act confused) regarding who they should pay.  Could cause you some delays too.