Hello, I just recently closed on my 1st Rental Property. The property is occupied on both sides (its a duplex). One of the tenants will be moving out, because I will occupy one side and continue renting out the other side. The tenant who is staying Ive been told (by the sellers) is the perfect tenant: quiet, employed, ALWAYS PAYS ON TIME!
Here is the dilemma, the current rent they are paying is $225 BELOW the rental market in that area. And before the property was sold they just renewed their lease for another entire year! My question is as the new owner, does that lease still have to be honored by me or can I redraft a lease (with a lot of the same stipulations) but giving them 60 days notice of a increase in rent? Im thinking.... the property was sold so the previous owner's lease is null and void, correct????? (I live in Georgia, so Id love to hear from a Real Estate Attorney as well! ....if this crosses their desk. Just to make sure Im being legal)
You buy the lease with the property. You must honor its terms.
If your interested in being legal th efirst thing you do, before you buy a property, is to study your state landlord tenant regulations.
Everything you believe regarding your rights and your tenants rights is incorrect. Best learn the law before you end up in court.
I don't know of one state where the lease does not come with the purchase. In other words, you must honor the prior lease. You can approach the tenants and ask to re-negotiate, but they do not have to, so you should be prepared to give something. New appliances, bathroom remodel, multi year lease with guarantee of no more rent increases during that time. Something.
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