Question
I just bought an apartment complex. What are my obligations as a landlord to my new tenants because of the change in ownership?
Answer
In some cases, the “landlord” identified on the agreement is the actual owner, in other cases it is a property management company. The answer to this question is the same whether there is a change in actual ownership, or a change in professional property management which serves as the tenant’s sole point of contact.
If the lease designated the agent as the landlord, and the sale did not result in a change of management, the new owner is not obligated to inform the tenant of the sale. However, if the lease designated the old owner as the landlord, then the new owner must notify the tenants of the change in ownership.
The Residential Landlord Tenant Act (RCW 59.18) requires that all landlords landlord inform their tenants of the name and address of the landlord. This must be by either a statement on the rental agreement or by posting a notice in a conspicuous place on the premises (RCW 59.18.060(12)).
Whether because the building has been sold or any other reason, this statute requires the landlord to “immediately” notify the tenant of any changes in the name or address of the landlord either by certified mail or by posting a notice on the premises.
If the new owner does not reside in the state where the premises are located, there must also be a person who resides in the county who is designated to act as an agent. The designated landlord can be an agent or property manager, thus the landlord in a lease does not have to be the actual owner.
In most cases the landlord has taken some sort of security or damage deposit from a tenant. RCW 59.18.270 requires the landlord to inform the tenant of the name and address of the bank where the security deposit is deposited. When a change in ownership occurs, the trust account must be transferred to the new owner and the successor landlord must promptly notify the tenant of the transfer and of the name, address, and location of the new depository.
