Many investment property managers 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 implementing to get you started and 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? What amount of money are they paying each month? Another documentation item to collect will be the rent roll, residential lease, tenant applications, lease addendums, inventory-condition report and others. Contact us for more information or to schedule a consult with a seasoned property manager in our office to help you start the process.
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 should have a right to know who they will be paying. You will have to decide whether you want to hire a property manager, or 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 living space, but also to their life.
Frequently Asked Questions About Tenant Occupied Property
Letting the tenant know about the change and collecting the necessary paperwork are the basics. Next, we’d like to share a quick list of questions that you may have.
Q: How Easy is it to Make the Transition?
A: 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.
Q: Will I Keep the Tenants?
A: 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? Have they made any repair requests? Those are some of the questions that you should ask to deem the tenants in good standing order or one who could pose issues in the future. Communication is going to be key at this point.
Q: What Are Some Things That Can Go Wrong?
A: The honest 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 not be able to prove anything in court without the necessary documentation. Additionally, a missing rent roll can also create problems. You will not know whether they paid last month or still owe. A tenant can tell you that they paid their rent, but they really did not. You cannot prove that they did not pay if you have a rent roll.
In need of a highly skilled and valuable property management company in Durham, NC? Barker Realty is only a phone call or web form submission away. Contact us anytime!
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