New Property Manager wants tenants to sign new lease with them

[Darren Carnes]

I have a 5 unit commercial property that currently has 3 tenants. I have been spending a lot of time renovating the other 2 units and decided to hire property management for the building. My new PM wants the 3 tenants to sign new leases with them that keep the same requirements of my active leases with them. So essentially mirror my lease, they say they need this to be able to evict and go to court if needed. I'm fine with it, however my 3 tenants have ganged up and refuse to sign the lease with the new PM. They threw a fit today calling me, telling me they're not signing and they don't want the locks changed, and they don't want to be managed by this PM. I informed them it is already done and is happening.

Has anyone ever dealt with this? My PM wants to evict them if they won't sign their lease. I'm not sure if they can or not. I'm going over there to talk with my tenants and see why they won't sign since nothing changes with that lease...it's just for liability.

[Nathan Gesner]

You can't force them to sign a new lease. All the PM needs is an introduction letter stating they are your acting agent, where they pay rent, how they communicate. All other terms and conditions remain the same.

Tenants don't get to dictate what you do with your property. Tell them you've hired this property manager and expect them to sign and abide by the lease. Otherwise, start termination.