Need to sell my rental property; what do I do with the renters? (lease, tenant)
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I have several calls in to realtors and attorneys on this, but would like some first-hand insight if anyone has some...
I own a property and used a management company to rent it out. I have a contract with the management company; the renters have a lease with the management company. Due to problems, I am ending my contract with the managment company. I also do not want to keep renting the property and need to sell for financial reasons.
Since I personally do not have a lease with the renters, I assume they would need to re-sign a new lease with me IF I was going to keep the home. Since there is no signed lease with me, does it automatically go to a month-to-month? Therefore I'd legally need to give them a 30-day notice to vacate the property?
I have read that if they have a lease to live in the home, I have to legally respect their lease and they have the right to stay in the home, even if I sell it. But I do not have a lease directly with them; their lease is with my property manager, who I am firing. I am also trying to sell to an owner/occupant, not another investment company who would rent it out.
I believe your tenant's lease has to be honored even if you fire your property management company in the same way in which, when you sell the property, the new owners are obligated to honor that same lease. You can certainly offer them a buy-out deal incentive to effect an early termination of the lease.
I'm not a lawyer and maybe someone else has better information. Good luck!
I have read that if they have a lease to live in the home, I have to legally respect their lease and they have the right to stay in the home, even if I sell it. But I do not have a lease directly with them; their lease is with my property manager, who I am firing. I am also trying to sell to an owner/occupant, not another investment company who would rent it out.
Ditto what STT said....
Couple things to understand real quick
1. The lease remains in effect until it reaches it's expiration. The lease is covered by laws that over-ride real estate purchasing laws.
2. When you hire a PMC they are your agent acting on your behalf, if you fire them, you become responsible. The only exception is if they just upped and rented the place and you had no idea what was going on. For what its worth, even if the PMC agreed to something witht he tenant such as cuttingt he rent in hald and they legally executed the agreement, your on the hook.
3. Once the lease is signed, it makes no diffrence who the new owner is.
I have several calls in to realtors and attorneys on this, but would like some first-hand insight if anyone has some...
I own a property and used a management company to rent it out. I have a contract with the management company; the renters have a lease with the management company. Due to problems, I am ending my contract with the managment company. I also do not want to keep renting the property and need to sell for financial reasons.
Since I personally do not have a lease with the renters, I assume they would need to re-sign a new lease with me IF I was going to keep the home. Since there is no signed lease with me, does it automatically go to a month-to-month? Therefore I'd legally need to give them a 30-day notice to vacate the property?
I have read that if they have a lease to live in the home, I have to legally respect their lease and they have the right to stay in the home, even if I sell it. But I do not have a lease directly with them; their lease is with my property manager, who I am firing. I am also trying to sell to an owner/occupant, not another investment company who would rent it out.
Their lease is almost certainly with you, the owner of the property. The property manager is simply your AGENT. Unless you rent the property to the management company and they sublet it, which I highly doubt.
You can sell the property with tenants in it. Obviously you disclose to any potential buyers what the terms of that lease, and you make arrangements with the tenant to allow showings of the property with reasonable notice, etc. In most cases, the new owner will be obligated to honor the lease, with an exception (in NJ at least) in the event the buyer wants it as a personal residence and not as an investment.
Absolutely convert their lease to a 30 day tenancy as soon as you can but don't be too quick to boot a steady paying tenant.
1) There is no telling how long it might take to actually find a buyer and get to settlement.
2) Many (most?) buyers today are investors... many of whom might be quite happy to have a built in tenant.
(under certain specific circumstances)
When (if) you have a real offer... deal with the tenants then.
Absolutely convert their lease to a 30 day tenancy as soon as you can but don't be too quick to boot a steady paying tenant.
1) There is no telling how long it might take to actually find a buyer and get to settlement.
2) Many (most?) buyers today are investors... many of whom might be quite happy to have a built in tenant.
(under certain specific circumstances)
When (if) you have a real offer... deal with the tenants then.
I'm not sure "many" or "most" buyers today are investors.
If this is a multi-unit rental property then there is a good possiblity that the first question a potential buyer will ask will be what the occupancy rate is. The second will be how long the current tenants have been there.
If it's a single family that was rented for some other reason then it makes no difference whether there are tenants or not if it is being sold as a home.
I'd ask the renters if they want to buy the place.
Ditto!
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