Investor · San Diego, CA · Member since 2012 · 309 posts · 18 votes
Hey guys!
We just purchased a single-family home that has a tenant in it who would like to stay for another 6 months until his house gets built. There is a lease in place, with a security and pet deposit that was transferred to us at closing from previous owners.
Do we need to sign a new lease, or would the one that tenant signed with the previous owners suffice? (The less work for both of us the better, we don't want to be increasing the rent at this time, however we want to be legally protected).
Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes
12y
I always put my lease into play as soon as possible. If they have a lease currently in place, then you must honor it however if you both agree you can terminate the old lease and put a new lease into play. I want my lease because it has certain provisions and is set up the way I like but if you are content with the old lease then there is no big reason not to keep it.
Investor · Delaware, OH · Member since 2013 · 224 posts · 64 votes
12y
Hi Edita - It depends on what the current lease says. You can't ask them to sign a new lease unless the current lease is expired - you are bound by the terms of their current lease. If it's a month-to-month, then you can ask them to sign a new lease with the proper notice. But as far as I know, both of you are bound by that lease, so if both of you are satisfied with the terms (even at month-to-month), keep it for the next 6 months. I think your biggest concern would be whether the terms of the existing lease meet your needs for demarcating tenant and landlord responsibilities, especially when it comes to moving out. If it doesn't, you may want to have them sign a new one.
I'd be interested in some responses from some more experienced landlords.
We inherited long-term tenants (9 years when we bought the place), and it's been a year and we haven't had them sign a new lease. They are great tenants, no issues, we aren't interested in raising the rent, and they aren't interested in moving. Although this summer I may draft up a lease for them to sign.
Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes
12y
I always put my lease into play as soon as possible. If they have a lease currently in place, then you must honor it however if you both agree you can terminate the old lease and put a new lease into play. I want my lease because it has certain provisions and is set up the way I like but if you are content with the old lease then there is no big reason not to keep it.
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
12y
As others have stated. you are bound by the existing lease so you can't force a new lease on the tenant.
However, if there is some incentive for both sides to do a new lease, then it may not be a bad idea. For example if ur lease expires in 3 months and they want to stay for 6 months, you can make a case of terminating the existing and doing a new 6 month lease is best for both parties.
Even without a new lease, one might consider a detailed inspection of the property conditions so you know at least what's broken or damaged at the time of your taking possession. Otherwise come moving out you may have damaged items the tenant claims to be pre-existing and the ex-owner is not going to help you.