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 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

BPCON2021

Check the full show notes here: https://www.biggerpockets.com/rookie110

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