Assigning a Lease Agreement
When purchasing or selling a tenant occupied rental property, an Assignment of Lease isn't always required, but is generally a good idea for the protection of the new owner to receive full rents from the investment property.
Often when notifying tenants that their rent is due and payable to a new owner, there is some skepticism on the part of the tenant. They worry that they may be getting scammed, since they may not be familiar with the parties of the sale and if there even was in fact a sale.
Having supportive documentation such as an Assignment of Lease or a Notice of Sale also notifies the tenant of a transfer of property ownership and the right to collect the rent.
Assignments of Leases are also used by many institutions as security for a debt, in the way banks usually include an "assignment of lease" in mortgage documentation.
The LPA Assignment of Lease form can help make the transition for your tenants from you to your buyer simple and easier to understand, while protecting the rights of the new owner.