New owner, new lease?
Click here for Top Ten Discussions. CLICK HERE for Q & A Homepage
Receive Free Rental Owner Updates Email:  
MrLandlord Q & A
     
     
New owner, new lease? (by Poder [OH]) Jan 14, 2019 8:42 PM
       New owner, new lease? (by DJ [VA]) Jan 14, 2019 9:07 PM
       New owner, new lease? (by Tom [FL]) Jan 15, 2019 12:59 AM
       New owner, new lease? (by Steve [MA]) Jan 15, 2019 3:08 AM
       New owner, new lease? (by Ken [NY]) Jan 15, 2019 4:30 AM
       New owner, new lease? (by LindaJ [NY]) Jan 15, 2019 4:56 AM
       New owner, new lease? (by plenty [MO]) Jan 15, 2019 5:25 AM
       New owner, new lease? (by Oregon Woodsmoke [ID]) Jan 15, 2019 5:50 AM
       New owner, new lease? (by Oregon Woodsmoke [ID]) Jan 15, 2019 5:55 AM
       New owner, new lease? (by cjl [NY]) Jan 15, 2019 7:04 AM
       New owner, new lease? (by Vee [OH]) Jan 15, 2019 7:50 AM
       New owner, new lease? (by Poder [OH]) Jan 15, 2019 8:24 AM
       New owner, new lease? (by Tom [FL]) Jan 15, 2019 12:44 PM
       New owner, new lease? (by Ray-N-Pa [PA]) Jan 18, 2019 5:01 AM

Click here to reply to this discussion.
Click Here to send this discussion to a friend

New owner, new lease? (by Poder [OH]) Posted on: Jan 14, 2019 8:42 PM
Message:

Our company recently acquired two properties in the middle of January, both of which are occupied. One has a lease expiring in July and the other is MTM. The MTM tenant has not paid the seller in 2 months(seller believes tenant was aware of proposed sale and took the opportunity to wait to pay the new owner as previously they paid on-time). We wish to increase the rents minimally on both properties and change the MTM to a year lease requiring a deposit. Would it be best to allow the current lease to remain in effect and THEN increase the rent in July OR give them 30 days from the first of the month following our acquisition date and raise the rent? With the MTM tenant, should I give them 30 days to vacate OR give them a chance to be a "4-star-tenant"? --162.200.xx.xx




New owner, new lease? (by DJ [VA]) Posted on: Jan 14, 2019 9:07 PM
Message:

With the month-to-month tenant, you need to give 1 month notice of any changes. Unless your state dictates something different.

With the lease, it goes with the property - you must honor it until it ends, and give proper notice of changes as outlined in the lease. If anything is not specified in the lease, follow your state's law. No matter what - follow your state's laws. Use the blue link on the upper left portion of this page. --68.10.xxx.x




New owner, new lease? (by Tom [FL]) Posted on: Jan 15, 2019 12:59 AM
Message:

Why would you give a tenant that is behind in rent for two months, then consider renewing a lease for a year. NO WAY!!! Back IDEA!!! The best option give this tenant an eviction notice OR give this MTM a 30 day notice of non renewal must be out in 30 days unless the present month to month lease states differently. Then give 30 day notice non renewal of lease.

Plus you can update the unit and rent it for at or above market rent for the unit.

The July lease runs with the unit and since you should have a copy of the lease. Review the lease. Also do an inspection of the unit and charge them for any damages unless prior to your purchase of the unit. And you were told there was damage prior to tenants occupying the unit otherwise charge them for any damages. Post a 24 hour notice to enter the unit for inspection of the unit. Also consider updating the July lease renewal unit. Then you can increase rents at or above market and if they do not want to pay the higher rent they can move and you can rent to a new tenant.

Best of Success!!! --99.56.xx.xx




New owner, new lease? (by Steve [MA]) Posted on: Jan 15, 2019 3:08 AM
Message:

When you bought the property you also bought all of the liabilities & assets including any unpaid rents that were due. Hopefully you verified who owns the appliances, any prepaid last month's rents & any SDs as well as the unpaid rents.

Did the previous owner start the process to evict this MTM tenant for non payment? If not then you should immediately issue the MTM tenant whatever notice Ohio requires to start the eviction process for nonpayment of rent. I personally would not want to keep a tenant who thought it was OK to try to stiff their LL because they were selling the building. IMO you need to get rid of this tenant, make the unit rent ready & start fresh with a tenant that you screen & select. --96.237.xx.xx




New owner, new lease? (by Ken [NY]) Posted on: Jan 15, 2019 4:30 AM
Message:

Evict the tenant who is behind in rent,in cases like this I have the seller sign over the rights to the back rent to me and I start the eviction right away.His first contact from you should be an eviction notice,whatever happens moving forward he needs to understand who is in charge --72.231.xxx.xxx




New owner, new lease? (by LindaJ [NY]) Posted on: Jan 15, 2019 4:56 AM
Message:

Get rid of the M2M immediately. Once they do something like this, you are better off getting rid of them, repair and upgrade the unit and get a tenant that meets your criteria, on you terms (year lease). If they have not paid rent, evict, otherwise just give the proper notice. Having a vacant unit allows you to do all the delayed repairs and upgrades and see what else needs to be done. Check the mechanicals, carefully inspect the roof, foundation, plumbing etc.

As for the year lease, you have to honor that lease, so there is little you can do to change that until the lease expires. You have a little more time here to actually see what the tenant and the building is like and whether you want to keep them with a new lease, or do the work on the unit as above. --108.4.xxx.xx




New owner, new lease? (by plenty [MO]) Posted on: Jan 15, 2019 5:25 AM
Message:

How do you get a deposit now? Give mtm notice to pay or quit. Ask for all unpaid rent, the rest of that is a story they are suprised you believe. Read above, no one believes that for a minute. Suddenly? Really? Your next move in tenant,who does pay on time, will pay a deposit and sign a 2 year lease cause all the improvements you have made will be fantastic! And you will have screen this person! And you will have all papers! Ya! Rinse and repeat. Get busy you have papers to write and deliver! There's a new Sheriff in town ! --99.203.xx.xxx




New owner, new lease? (by Oregon Woodsmoke [ID]) Posted on: Jan 15, 2019 5:50 AM
Message:

How cold is it in OH? I might leave the month to month in place if they pay rent on time and are taking care of the place. Then give them their 30 day notice to vacate for the 30 days in March.

I wouldn't keep them longer than that after their trick of not paying rent for two months. If they were late for me, I'd get them out immediately and deal with the winter vacancy. I'd rather deal with a vacancy than to deal with non-paying tenants. I most certainly would not put them on a lease because I wouldn't want to keep them.

Even if they were really good, I wouldn't put them on a lease that is going to expire in January. --98.146.xxx.xxx




New owner, new lease? (by Oregon Woodsmoke [ID]) Posted on: Jan 15, 2019 5:55 AM
Message:

The same about a winter lease for the other tenant. You have to honor their lease, but sometimes a tenant will agree to sign a new lease if it benefits them. However, switch leases now and you have a lease ending in the middle of winter.

Right now, if they aren't good, you can get rid of them in July. So I suggest that you wait a couple of months to make sure you like them and then ask if they want to sign up for another year lease, that expires May 1st.

There is no reason for them to switch leases if it doesn't benefit them and a rent increase doesn't benefit them. In order to get them to switch, you have to offer an inducement. --98.146.xxx.xxx




New owner, new lease? (by cjl [NY]) Posted on: Jan 15, 2019 7:04 AM
Message:

Like the others on here said the one in the lease you are kind of stuck with (read the lease - see if there is anything you can change). Typically you can TRY to change the lease if you want BUT the tenant would have to agree to the change as well. If they don't agree (aka sign the new lease) then you can't do anything but stick with that lease. However, if they break the lease you can pounce if you want. I would just hold off until the lease ends and give them the new lease opportunity (if you want to keep them) sometime in April/May to start when the current lease expires.

As for the m2m - if they haven't paid then I'd send them a POQ notice. I think Ken [NY] also stated to have the Seller sign off on any arrears to you otherwise you really only have the "right" to ask for the amount owed to you for January which is the pro-rated amount for the month. If you don't want to do that then check your state laws to see when you can send them a termination notice. In NY it's 30 calendar days so if you sent it to them "today" the earliest you can get them out is February 28th.

Good luck. --209.217.xxx.xx




New owner, new lease? (by Vee [OH]) Posted on: Jan 15, 2019 7:50 AM
Message:

Read the estoppel to see who owns what appliances, has access to storage, parking and what security deposit value you are involved with, download your local tenant rules and OH 5321 so you know the laws under which your business will operate, your lease must conform to applicable law or the court will backfire you claims. --76.188.xxx.x




New owner, new lease? (by Poder [OH]) Posted on: Jan 15, 2019 8:24 AM
Message:

Hi All:

Thanks for the great responses. This is such a helpful sight!

DJ- Yes, our company IS providing 1 month to MTM tenant and we planned to honor the lease agreement. Thanks for the tip on the link above. I have a 2016 edition of Baldwin's Ohio Landlord Tenant Law and use it often and the link is even better as it is updated!

Tom: the ONLY reason we considered allowing the tenant a chance is because tenant was a long-term(5 years) tenant with a history of on-time payments so... hence giving the tenant a chance. BTW the unit is beautifully updated already. Should the tenant decide (or be "encouraged") to vacate without doing any damage, it should EASILY rent with a simple clean-up and paint job. A friend(lawyer) suggested contacting the tenant to let them know she may stay as long as she pays her back rent to the seller(to show good faith). If she doesn't our company was advised to wait until the unit is vacant to purchase the property. WE shall see... --162.200.xx.xx




New owner, new lease? (by Tom [FL]) Posted on: Jan 15, 2019 12:44 PM
Message:

Poder of OH in your first post it appears you own the units. Then in your last post you are in the process to purchase the unit. IF you are negotiating then I would make it the sellers responsibility to evict the non paying tenant. The tenant that is 2 months late I would not waste time and ask to have her out before you purchase the house. OR evict her once you purchase based on the MTM and don't renew the lease. It sounds like only touch up will be needed in the unit that's MTM.

Ok so the MTM has been there 5 years and in the last two months has not paid. I would not waste my time with a second chance because now you set in motion that you are flexible and will let them slide with not paying for several months is ok. Eviction or non renewal is the best option.

Best of Luck with the purchase of the units. --99.56.xx.xx




New owner, new lease? (by Ray-N-Pa [PA]) Posted on: Jan 18, 2019 5:01 AM
Message:

An estophal letter during the closing process will help you set the tone for all leases

You can't treat the two residents the same way since one comes with additional rights --72.23.xxx.xx



Click Here to send this discussion to a friend
Report discussion to Webmaster


Reply:
Subject: RE: New owner, new lease?
Your Name:
Your State:

Message:
New owner, new lease?
Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from Mrlandlord.com every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers.
Email Address: