As the real estate broker of record for a rental conversion your approach to the tenants should reflect keen sensitivity to the tenant's mindset and needs.

There is no time that emotions run higher than at the time it is announced to the tenants that the property is being converted to condominiums. The seller, the converter, and you as the broker of record should be involved in the announcement that the property is being converted to condominiums.

The announcement will create anxiety among the tenants for many reasons, depending on their ages, length of time in the community, and financial situation.

Your marketing firm will come up with the marketing strategy to position the condominium for sale to the general public.

There are certain basic items, however, that must be included in the tenant sale's package to help make sure they understand what is taking place.

Their first reaction might be that they are "getting kicked out."

A professional, sensitive approach to the tenants must accomplish two things: prevent a mass exodus of renters and generate sales.

Here is a checklist of what to include in the tenant package:

1. A letter from the apartment seller announcing the sale and touting the merits of the converter.

2. A letter from the converter that provides both assurances and sales opportunities.

3. A letter from the broker of record, outlining sales procedures

4. An attorney letter giving legal notice to residents (if required by law in your state).

5. A price list

6. The Association's budget

7. A fact sheet about condominium ownership in general and the lifestyle of that particular property.

8. The renovation schedule, showing what will be done and when.

9. Reprints of ads that will be breaking to the public announcing the grand opening.

10. An owning vs buyer comparison chart.

11. Monthly payment schedule including interest rate, initial investment, and so forth.

12. A brochure

Obviously this list will be modified. The responsibility for these materials is negotiable between the broker and converter.

If the converter is experienced, he may want to be responsible for any and everything to do with the tenants. If so, so much the better for the broker. As the broker, your focus must be on proper on site staffing and sales production.

This is usually not a game for general agents who have "site sitting" experience. This is for new homes agents who understand the difference between "sitting a model" and marketing a community.

Published: March 30, 2004

Use of this article without permission is a violation of federal copyright laws.

David Fletcher directs the condominium conversion team for Keller Williams Realty in Orlando, Fl and provides downloadable sales and listing training solutions for real estate agents and broker/owners through Agents Boot Camp, Inc., a company he founded to provide affordable training systems newly licensed real estate agents. He has been involved with more than $3 billion in Florida residential sales, chaired the Florida Homebuilders Associaton's Sales and Marketing Council, and been a featured speaker at NAR's national convention. You may see his training products at www.agentsbootcamp.com or contact him directly at 888.222.1935.