110: Rookie Reply: Informing Inherited Tenants of a Change in Ownership
This week’s question comes from Rhett on the Real Estate Rookie Facebook Group. Rhett is asking: How do you inform an inherited tenant of changes in ownership after you close on a property?When you inherit a tenant, you often inherit a lease as well, so it’s important to know exactly what the tenant is paying for rent, their security deposit, and their lease terms during your due diligence period. If you want to notify your new tenants of an ownership change, make sure you do so professionally, so they reach out to you on your business phone, during the hours you’ve set availability at.Here are some suggestions from Ashley:Send an estoppel agreement to the tenants so you can verify the leaseGive your new tenants a welcome package with all the needed informationCheck your local laws about rent increase timelines Prepare for the potential of vacancy in case a tenant disagrees with the rent change/ownership changeAnd more in the episode…If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).Links from the ShowReal Estate Rookie Rookie Facebook GroupReal Estate Rookie Youtube ChannelBPCON2021Check the full show notes here: https://www.biggerpockets.com/rookie110
Show Notes
This week’s question comes from Rhett on the Real Estate Rookie Facebook Group. Rhett is asking: How do you inform an inherited tenant of changes in ownership after you close on a property?
When you inherit a tenant, you often inherit a lease as well, so it’s important to know exactly what the tenant is paying for rent, their security deposit, and their lease terms during your due diligence period. If you want to notify your new tenants of an ownership change, make sure you do so professionally, so they reach out to you on your business phone, during the hours you’ve set availability at.
Here are some suggestions from Ashley:
Send an estoppel agreement to the tenants so you can verify the lease
Give your new tenants a welcome package with all the needed information
Check your local laws about rent increase timelines
Prepare for the potential of vacancy in case a tenant disagrees with the rent change/ownership change
And more in the episode…
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Real Estate Rookie Rookie Facebook Group
Real Estate Rookie Youtube Channel
Check the full show notes here: https://www.biggerpockets.com/rookie110
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