Many investment property owners want to know what they need to do if they purchase a tenant occupied property. The first steps that you take will determine your success as a property manager. Here are some items from Barker Realty to consider to get you started on the right track.
Collect Previous Documents
It’s important for the property management company to collect all necessary and supporting documentation. This documentation could outline: Who is the tenant? What is in the lease term? What amount of money are they paying each month? Another item to collect will be the rent roll, residential lease, tenant applications, lease addendums, move-in inspection report and contact information for the tenant.
Let the Tenant(s) Know
It will be the role of the investment property managers to let the tenant know about the new owner. Tenants need to know who they will be paying and what you or your property manager’s expectations are. You will have to decide whether you want to hire a property manager, or if you want to take care of this yourself. Notifications by multiple channels via mail, email, a phone call or even in-person are great ways to communicate with tenants regarding these types of changes to their home, but also to their life.
Frequently Asked Questions about Tenant Occupied Property
Next, we’d like to share a quick list of questions that you may have and provide some general answers.
How easy is it to Make the Transition?
The transition should not be difficult if the information is easily available. The process will only be difficult if there are documents missing. Consider all angles and cover all bases when taking over a tenant occupied property and be prepared to quickly make decisions.
Will I Keep the Tenants?
You may be wondering whether you should keep your current tenants or get new ones. Is the tenant paying the rent on time? Is the tenant paying the market rent? Are they taking care of the home? Those are some of the questions that you should ask to deem if the tenants are in good standing or one who could pose issues in the future. Communication is going to be key at this point.
What Are Some Things That Can Go Wrong?
The answer to this is, ANYTHING. Really! Problems can arise from anything or anywhere, so it’s crucial to implement processes like taking proper move-in pictures or creating and checking off an inventory condition report. If you have any issues with your tenant, then you will need proper documentation to prove anything in court.
Do you need help with managing a tenant occupied property? Barker Realty is only a phone call or email away. Contact us anytime!
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