What are my options?

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Hello everyone,

Buying an owner occupied two family in Jersey city. We are planning to live in the owner's unit and tenants above have lease that is expiring mid 2024. My question is how I can nicely end their lease on that date? Can I just tell them to move out with advance notice? What are my possible ways to not to continue the lease. I may be wrong, but as far as I know I cannot just simply tell the tenant to leave for no reason, but in my situation I didn't vet them, didn't do their background check, previous owner did all that.

Thanks to all in advance for responses.

Drew Sygit · Answer

@Leo Parshukov you'll want to send a notice of your intent in accordance with local laws - or hire a real estate attorney to do it.

If they ask you, "why?", tell them you have family you may move in.

Leo Parshukov · Answer

Hello everyone, I am reading some great replies. Many thanks to everyone!! I will reach out to some of you when I am ready. Still in the process of closing

Marlene Arabia · Answer

Leo,

I'd be happy to discuss what steps you need to take to property evict the tenant. Please feel free to reach out.

Best, Marlene

Dominic Rosato · Answer

Hi Leo- Keep in mind you are not performing an eviction here. You shouldn't even have to send the notice-to-quit (but that depends on the type of lease that is in place). As someone who works in leasing & property management here in NJ, you should be able simply non-renew their lease as it expires. They signed a binding document that has a specific end date, although I haven't seen a copy of your lease. If you want to be sure, I would absolutely have an attorney go over your lease and make sure you're not missing anything.

NJ is a tenant-friendly state, so it is important that you do everything by the book. If you'd like any recommendations, I work with some great real estate attorneys. Let me know!

Leo Parshukov · Answer

Hi Daniel, I appreciate full response! Thank you! I definitely want to do it as smooth as possible and as peaceful as possible. I will consider all points mentioned. Do you happen to know a reputable lawyer I can consult with?

Daniel Rivera · Answer

Hi Leo,

First off, congratulations on your new investment in Jersey City! Navigating tenant relations, especially in an owner-occupied property, requires a careful and respectful approach. Here are a few suggestions:

1. Understand Local Laws: Begin by familiarizing yourself with New Jersey’s and Jersey City's tenant and landlord laws, particularly those governing lease termination and eviction. Laws vary significantly by state and city, and Jersey City may have specific ordinances that apply.

2. Review the Lease: Check the existing lease agreement for clauses that cover termination by the landlord. Some leases include provisions for termination upon sale or owner occupancy but adhere strictly to the terms and any required notice periods.

3. Provide Ample Notice: Regardless of legal minimums, giving your tenants more notice than required can help maintain a good relationship and give them ample time to find new housing.

4. Communicate: Depending on your options, consider having a face-to-face conversation with your tenants. You may run into the situation where the tenants are planning to move out at lease end anyway. You can simply ask if they have plans to move out or extend their lease. If not, you can move to the alternative solutions. Regardless, I would suggest offering to assist in their search for new housing if possible.

5. Legal and Respectful Termination: If the lease does not renew automatically and you decide not to renew it, ensure you follow the legal requirements for notifying your tenants that you will not be renewing their lease. This typically involves sending a formal, written notice within a specific timeframe.

6. Consider Incentives for Leaving Early: As @William Sing suggested, consider offering an incentive for the tenants to move out early. This can be in the form of cash, paying their agent fee, part of their moving costs, etc.

Remember, the goal here is to end the lease peacefully and legally, respecting both your rights and those of your tenants. If you're unsure about the legalities or the best approach, consulting with a property management company familiar with local laws or a real estate attorney could be invaluable.

Best of luck with your new property and navigating this transition smoothly!

Leo Parshukov · Answer

Hi William, thank you so much for such a great answer!

William Sing · Answer

Hey Leo,

Great question and it's smart you're thinking ahead on this. The first step is definitely to get familiar with the landlord-tenant laws in Jersey City, as these will guide your actions. Look into "no cause" and "for cause" evictions to understand the grounds under which you can decide not to renew a lease. In many places, giving proper notice that you're not renewing the lease is perfectly acceptable, but specifics vary by location.

Another option to consider is "cash for keys," where you offer the tenant a financial incentive to leave early. This can be a smoother, more amicable way to regain possession of the unit.

Lastly, tapping into local landlord associations can be incredibly helpful. They're often a goldmine of information and resources tailored to your area's regulations and can offer guidance specific to your situation.

Best of luck with your new property and navigating this transition!

- Will

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