Landlord Rescue of Tenant-Occupied Properties
We often get calls from owners with existing tenants saying they are tired of managing, or the tenant has given them so much grief they want out of the landlord business. We also get calls from owners that have gotten notices from their current managers announcing that they have decided to get out of the business and close their doors. We offer several services for those owners.
Because there is an existing tenant in the property the process of getting Crown involved is very different than the process of taking on a vacant property. Under certain circumstances we will step in and take over for the owner, as outlined below.
Steps to taking over an existing tenant
We have stumbled over this process enough times to know that there are some properties (as well as owners and tenants) that don’t fit our model. There is an evaluation process we go through to figure out whether or not we will step in and take over an existing tenant.
Have an initial discussion with the owner to see if your house fits our model. We look at issues such as geographic area, rent, and style.
Have a property manager do a property visit to evaluate the tenant and the physical condition of property.
Q: Why do we need to do a property visit before we make our final decision?
Many times we have taken over a property that the owner has not seen for years. We are constantly amazed at the terrible condition some properties are in and we want to see it before we take it on. We are up to the challenge of a poorly maintained property and we are not afraid of it even if it’s a wreck; we just want to know about it before we say yes. Property visits don’t take long. A manager will contact the tenant after you have teed it up, set an appointment with the tenant (or you) and walk the property. Normally it takes less than 30 minutes.
If we decide to take on their property ….
- owner executes an assignment of lease over to Investors Gurukul. Note: If the current lease has expired (or is void) we will require the tenant sign a Investors Gurukul lease within 30 days of Investors Gurukul taking over.
- Owner goes on line and completes owner/property sign up paperwork
- Owner transfers their file to Crown (tenant ledger with outstanding charges, original inspection, keys, original lease, and all housekeeping papers).
- An effective date is determined by the parties as to when Investors Gurukul takes over.
- Owner pays Investors Gurukul half a month’s rent.
- Have the owner complete a questionnaire so we can evaluate the situation.
There are leases we won’t take over simply because there is so much in them that we don’t agree with or won’t expose ourselves to. We need to see the move in inspection so we can properly advise the owner of the prospects of retaining the deposit after move out
