What happens to a property management firm’s tenant files when it changes hands?

Start by sorting the files by who actually owns them. Leases, applications, notices and payment histories often relate to a building owned by a client of the firm. The manager keeps them on that client’s behalf. Ask to see the management agreements to learn what each says about records, and ask your lawyer how a sale affects them.

Then look at how the files are kept. Paper cabinets, shared drives and software systems each need a different handover. Ask who has access, how long records are kept, how old files are disposed of and where backups sit. Tenant files hold personal details, so find out how the firm protects them and what privacy duties apply to a new owner. Your lawyer can explain those.

Plan the transfer. Agree with the seller on a date, a format and a checklist of what moves. Check that active files are complete: signed leases, deposits held, inspection reports, open maintenance requests and arrears. Test a sample against the accounting records. Finally, talk to the property owners early. Many agreements allow them to end the arrangement, and they decide whether the files stay with the firm after the sale.

Key takeaways

• Work out which files belong to the firm and which belong to the owners.
• Plan the format, date and checklist for moving records and access.
• Review privacy handling for tenant personal information with your lawyer.