What document do I use to inform my tenants of a change in ownership? I just sold my rental units and need to give them information regarding the new owner.

The most common way to provide tenants with notice of a change of ownership is for the seller to confirm in writing at close of escrow that a transfer of ownership has been completed. The notice should provide the buyer’s name or entity, contact information, and any other information that the buyer wishes to provide. Tenants will understandably be anxious about the new ownership, whether their lease is still in place, and the possibility of potential rent increase. The notice of sale can be helpful to reassure tenants with fixed term leases that their current lease is in effect through the contracted lease expiration date and that their security deposits have been transferred to the new buyer. Tenants should be advised to contact the new owner directly with any questions or concerns.

In some localities, a landlord is required to provide written notice to the tenants of a change in ownership and/or management. There may be a requirement that the notice be provided within a specified number of days following close of escrow. You would need to research applicable laws for the location of your rental property to determine legal compliance.

Comments are closed.