Non-renewing leases for adopted tenants on new purchase

Non-renewing leases for adopted tenants on new purchase

Investor · houston, TX · Member since 2021 · 44 posts · 17 votes

I'm currently in the process of purchasing a multi family property. This is my first time purchasing a multifamily and first time inheriting tenants 

Unfortunately 2 of the 3 units haven't been upkept or repaired in quite some time. They have significant general issues plus safety issues as well (like flooring falling in). 


While I'm excited to have paying tenants already in place, I'm not comfortable keeping them beyond their current leases due to the conditions of the units. I plan on mostly gutting them and renovating them asap. 

My question is, what would be the best way to give those 2 tenants notice that their leases will not be renewed? 

Im closing March 30 and their leases end May 30. I was planning on including a letter stating that im the new propwrty manager, how to pay the next couple months rent, and letting them know that their leases wont renew. Is it a good idea to let them know all that info at the same time ? Are there better options that im not considering ?

0Reply
8 views

4 Replies

Jump to latestLatest
  • Property Manager · Cleveland, OH · Member since 2020 · 32 posts · 19 votes
    4y

    Hello Mary, 

    Sending them a welcome letter to address the new property management and the ways to pay going forward is a great first step. Depending on the lines of their lease, you will want to provide them adequate notice which is typically at least 30 days - if it is 30 days, I would advise to give them at least a 45 days notice out of courtesy. I would recommend giving them the separate notice and keeping the date that you sent them, along with a picture of the notice being posted, in your records. 

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    So, I'm a tenant and I receive your notice - why would I pay? 

    You probably can't evict me before I move out!

    So, proceed with caution.

  • Investor · houston, TX · Member since 2021 · 44 posts · 17 votes
    4y

    Drew - 

    So what would your advice be in this scenario ? Wait until I receive the last rent payment of the last month? 

  • Investor · houston, TX · Member since 2021 · 44 posts · 17 votes
    4y

    Iman -

    thank you for the advise! I didn't even think of leaving 2 separate notices. That's a good point. 

    After reading your comment, I am thinking 45 days is more reasonable for both me and them (rather than the initial 60 days/2 months I was considering)

Join the conversationCreate a free account to reply, vote on answers and follow this thread.