Purchasing a Student Rental to Convert to a Short Term Rental

[Eric Skeen]

If we purchased a current student rental that had a lease signed for the upcoming 2022-23 school year - are we obligated to honor the lease the previous landlord has with the students?  

Is it lease specific?  Is it something to check with the municipality?  Check with the nearby university?  Check with my lawyer?  Or are all bets off and we buy it, the previous landlord deals with the students and we turn it in to an Airbnb?  

[Andrew Garcia]

Hi @Eric Skeen, I would check with a local real estate attorney.

You might be able to work out something directly with the tenants as well to buy them out or find them similar housing elsewhere.

When it comes to legal issues like these, you definitely should check with a lawyer.

[Nathan Gesner]

Quote from @Eric Skeen:

If we purchased a current student rental that had a lease signed for the upcoming 2022-23 school year - are we obligated to honor the lease the previous landlord has with the students?  

Is it lease specific?  Is it something to check with the municipality?  Check with the nearby university?  Check with my lawyer?  Or are all bets off and we buy it, the previous landlord deals with the students and we turn it in to an Airbnb?  

 Existing leases transfer with the sale of the property. If they leases have not started yet, then you may be able to change them before they start, but that's a question for an attorney. 

Even if they are locked in, you can make changes when all parties agree. It's unusual that they would willingly agree to a rent increase.