Can I terminate the current tenants verbal leases after closing?

Can I terminate the current tenants verbal leases after closing?

Member since 2021 · 8 posts · 0 votes

I have just closed on a duplex in Miami which has two tenants on verbal leases paying monthly. The estoppel letters were signed with a lease end date 31st March 2022.

I sent the tenants letters with notice to terminate their leases, the date being 31st Jan 2022.

The tenants have said they were assured they could stay until March. The previous owner has also agreed that he had promised them that they could stay until that date.

Ive since had a response from the previous owners lawyer:

“The tenant is occupying the property pursuant to a verbal lease agreement with the prior owner extending the term of the lease until March 31, 2022 as set forth in both estoppel letters.

If the prior owner is called to testify in eviction proceedings, the prior owner will have to testify as to the agreement with the tenants as stated above.”

Ideally I would like the tenants to vacate asap so we can renovate and increase the rents. Also one of the tenants doesn't actually live there, they are subletting it as an Airbnb.

What are my options here, do we have the right to terminate, or at least raise the rents to market value for the final months. Or am I stuck until April?

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Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
4y

You should just wait the extra two months. Your beef was with the prior owner and should have been settled before closing. Your most cost effective option in this case will be to stay out of court and try to have a no damage turnover in march.

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  • Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    4y

    You should just wait the extra two months. Your beef was with the prior owner and should have been settled before closing. Your most cost effective option in this case will be to stay out of court and try to have a no damage turnover in march.

  • Member since 2021 · 8 posts · 0 votes
    4y

    Thank you for you response. What about the tenant doing airbnb? i have read it is illegal in Florida if you do not own the property? Can I make them vacate for illegal use of the property?

  • Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    4y

    The signed tenant estoppel letters verify the lease agreement ending at the end of March. I would think you'd need some verbiage in the lease about not AirBnb-ing it out to terminate the lease for that condition. Even if you could somehow evict because of that it would be an expense and a headache and might take you until March to finish it anyway.

    Sounds like you're stuck until the end of March. Your options are to make invalid threats of eviction (not recommended), offer them cash to vacate early, or to wait it out. 

  • Investor · Lansdowne, PA · Member since 2008 · 23 posts · 4 votes
    4y

    If they're paying rent without damaging your asset take the payments and remain thankful. 

  • Investor · Ocala, FL · Member since 2016 · 299 posts · 110 votes
    4y

    Have you checked the regulations on Airbnb's in Miami?  https://www.miamidade.gov/buil...   Read the rules - I doubt they are registered and paying taxes.  Did you see the required notice posted when you inspected?  

    Enforcement

    Violations to the standards provided in these regulations as well as other provisions of the County Code are subject to the civil penalties schedule provided in Chapter 8CC of the Miami-Dade County Code of Ordinances.

    Operating a vacation rental without a Certificate of Use is a violation of the County Code and the civil penalty schedule is as follows:

    • 1st Offense = $100
    • 2nd Offense within 24 months of 1st offense = $1,000
    • 3rd Offense within 24 months of most recent of the preceding offenses as well as subsequent offenses = $2,500

    Penalties accrue and a lien may be placed on the property if the fines, enforcement costs and administrative costs are not paid or the violation not corrected.

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