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My rental property in Texas was sold but the tenant still owes

me $700. Is it...
My rental property in Texas was sold but the tenant still owes me $700. Is it the property management responsibility to collect the rent? Should I need to tell the new owner. What do I need to do to collect the rent?
I live in California.
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Answered in 19 minutes by:
7/26/2013
justiceb4all
justiceb4all, Arbitrator
Category: Landlord-Tenant
Satisfied Customers: 12,554
Experience: Attorney, Juris Doctor, Post Doctoral Degree - LLM in Federal Taxation, General Practice,
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Hi, My name is XXXXX XXXXX I will be assisting you. If I have not Answered your question, please let me know and I will be glad to explain further,

 

 

If you had a contract with a property management company under which they collected rent from your tenant or tenants and forwarded the rent to you, then part of their responsibility in connection with collecting the rent would be to send written notices to tenants who are late in paying their rent and to include in such notices any late fees provided for in the lease. The property management company has an affirmative responsibility to you to pursue a tenant who has not paid the rent.

 

However, whether or not the property management company would also be required to file lawsuits for the collection of rent would depend on the language in the contract you had with them and if that responsibility was specifically stated in the contract.

 

It should, however, be made clear to the new owner that any rent that was due and payable before the date of settlement belongs to you and any rent they collect which is attributable to a period prior to settlement should be forwarded to you,

 

______________________________________________________________________

 

 

Please be kind enough to rate Excellent Service" so that I receive credit for assisting you, it will not cost you anything additional to give me a positive rating, and that is the only way I can receive credit, Thank you for understanding,

 

Bonus and Positive Feedback on survey is very much appreciated,

 

ANDREA

 

 

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Customer reply replied 4 years ago

The escrow already closed a couple of days ago. And I do not own the property anymore.


Can I still ask the property management co to collect the rent?


 

Yes, you can still ask them to collect the rent because even if your contract with them provided that the contract would expire upon the sale of the property, their responsibility was to collect rent which was due and payable during the period of time that you owned the property. And, since the rent which was not paid became due and payable and attributable to a period of time when you still owned the building and during a period of time when the contract you had with the property management company was still in effect, it would be the responsibility of the property management company to collect the rent for you,

 

___________________________________________________________________

 

 

Please be kind enough to rate Excellent Service" so that I receive credit for assisting you, it will not cost you anything additional to give me a positive rating, and that is the only way I can receive credit, Thank you for understanding,

 

Bonus and Positive Feedback on survey is very much appreciated,

 

ANDREA

 

 

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Customer reply replied 4 years ago

I also would like to know,



Do I need to pay the prorate rent for July and security deposit to the new owner?


(the escrow closed July 24)


 


Should I need to tell the new owner that the tenant still owes me?

1. How rent is to be divided between the buyer and seller if the settlement takes place on any day other than the first or the last day of the month is usually addressed in the Agreement of Sale. In the absence of any language, the rent should be prorated in which case, at $700 rent per month, you would be entitled to $519.35, representing 23 days, and the buyer would be entitled to $180.65, representing rent for 8 days;

 

2. The security deposit given by a tenant to insure that no damage will be done to the apartment should be paid to the buyer because if there is no damage to the apartment, the buyer will be required to refund the security deposit to the tenant. If damage is done to the apartment, the buyer will need the security deposit to repair any damage done by the tenant;

 

3. You should tell the new owner that the tenant still owes you rent for the month of July and that any payment made by the tenant will represent rent for the month of July part of which is owed to you,

 

____________________________________________________________________________

 

 

Please be kind enough to rate Excellent Service" so that I receive credit for assisting you, it will not cost you anything additional to give me a positive rating, and that is the only way I can receive credit, Thank you for understanding,

 

Bonus and Positive Feedback on survey is very much appreciated,

 

ANDREA

 

 

justiceb4all
justiceb4all, Arbitrator
Category: Landlord-Tenant
Satisfied Customers: 12,554
Experience: Attorney, Juris Doctor, Post Doctoral Degree - LLM in Federal Taxation, General Practice,
Verified
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Hello, Thank you for the Excellent Service rating and the bonus. It was both kind and generous of you and I appreciate it greatly. Please let me know if you have any further questions and if you have any questions in the future, please feel free to ask for me by typing my name at the beginning of your question like this,



"For Andrea ............ "

 

 

Thank you again for allowing me the opportunity to be of assistance,

 

ANDREA

 

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Customer reply replied 4 years ago


For Andrea..


 


I have one more question,


 


I mentioned that the tenant hasn't paid the part of the rent when I was the owner of the property.


And she still owes me $700. Did I have to disclose the sellers disclosure notice to buyer about the tenant delay rent before the escrow closed?

No, a tenant's late payment of rent is not the subject of a Disclosure Statement and does not have to be included,

 

 

ANDREA

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Customer reply replied 4 years ago


Just want to confirm with you that the "Seller's Disclosure Notice" is to disclose things about the property. But I did not have to disclose about the tenant has not paid the rent.

A Seller's Disclosure Statement to the Buyer is generally for the structure, the property itself, not the renters,

 

 

ANDREA

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