First Property and it has tenants

General Landlording & Rental Properties
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First Property and it has tenants

Rachel Seymour-Newton
Member since 2023 · 11 posts · 14 votes

Hi there,

I just closed on my first property. It's a duplex and currently has tenants. Both of the tenants are moving out in the next two weeks and neither of them gave a 30 day notice to the previous property manager. It is stated in their previous lease that if they didn't give a 30 day notice they would forfeit their deposit. Does that carry over to me? Should I have them sign my lease for the week or two that they're living in the house before they move out? Does anyone have any experience with situations like this that I could chat with? 

Thanks in advance!

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  • Ryan Coon
    Attorney · Spanish Fork, UT · Member since 2025 · 77 posts · 98 votes
    1y

    Generally speaking, unless the purchase contract stated otherwise, the existing lease on the property would be considered part of the property and would thus transfer with the property. This means that you almost certainly acquired the lease and stepped into the shoes of the previous owner as the new landlord. Thus, all terms of the existing lease would apply, just substituting you in as the new landlord. This includes the tenants obligations such as the 30 day notice requirement and your right to retain the deposit if the tenant fails to provide the required notice.

    However, as a practical matter, when a rental property changes hands with pre-existing tenants, it is wise and good practice to send a notice to the tenants informing them of the change and providing updated information on how to contact the new landlord, where to submit payments of rent, etc.

    Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

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  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    1y

    Something smells fishy about this situation.

    How have you confirmed there are security deposits and who is holding them?
    - Often on a sale, they are credited to the buyer on the settlement papers.

    The lease is a contract that you have to honor as the buyer and the tenants also have to honor. Many tenants try to use a change in ownership to claim their lease is now invalid, but it is NOT.

    Where the existing leases month-to-month? 

    Are the two tenants related?

    It is very odd they would both move out at the same time...

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    • Rachel Seymour-Newton
      OP
      Member since 2023 · 11 posts · 14 votes
      1y

      @Michael Smythe I was credited the security deposits and I'm currently holding them. Yes the existing leases were month to month. The two tenants are not related. 

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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    The lease should stay intact no matter who the owner is and therefore they would have to give 30 day notice if that is what the lease states. I am assuming that they are on a month to month but if they are not then they have to lease the property until the end of the lease AND give 30 day notice at the end.

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