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Lease Transfer and Cash-Paying Tenants, Payment Options
I am under contract (closing 5/22) on a quadruplex in Austin, TX. Cash deal, using a wholesaler. All four units are occupied and the tenants are currently paying their rent via cash in person. I clearly do not want to continue that for a variety of reasons. What would be the best and smoothest way to transition the tenants to a different payment option? I would also like to protect my identity and I am filing a Wyoming LLC to manage a Texas LLC. So, I obviously don't even want to give out my personal address.
The tenants are low-income and may not have banks. Money order? Payment service?
Are you based in CO and the quadplex in Austin, TX? If so, how will you go about managing your property?
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#3 Commercial Real Estate Investing Contributor
- Attorney
- Dallas, TX
Send a tenant notice letter signed by the seller at closing, this will instruct the tenants to pay a new way and that their lease is assigned to the new LLC.
We can help form your structure!
There's no reason a tenant can't pay using a money order or electronic transfer. If they don't use banks, that's their problem, don't make it yours.