Investor · Seattle, WA · Member since 2016 · 25 posts · 21 votes
I have a lease with a PM that is set to auto renew because the tenants did not give 60 days notice (lease end date otherwise would have been May this year). We are ending our contract with the current PM end of April, will the lease that the tenants previously signed be legally binding to auto renew now that we will self manage? When we purchased the property the lease was assumed as is so I feel that this one should also be bound. The property in question is in GA. We have not yet received the lease agreement from the PM but it was requested. Would love insight into my lease question.
Investor · Takoma Park, MD · Member since 2016 · 166 posts · 147 votes
9y
Hi @Linda Dalton, the answer is that it depends on what the local law says. This may be governed by the municipality or by the state. If the lease is between the PM and the tenant, then you should execute a new lease. Local law will determine whether you can change the terms unilaterally. But if your tenants are agreeable, it shouldn't be an issue.
Is your concern that you are stuck with them or that you are stuck with a lease whose terms you do not like?
Residential Real Estate Broker · Cartersville, GA · Member since 2015 · 575 posts · 581 votes
9y
@Linda Dalton Leases in Georgia (and pretty much everywhere else) "run with the land" meaning that whatever leases is in place stays there even if the property were to be sold. In the case that you are taking back over management from a previous company the lease terms remain in effect. That being said it is a golden opportunity to get the tenant to sign a new updated lease with you since most tenants don't know any better. Just tell them you have taken over the property and they need to sign a new lease with you. 99 out of 100 tenants will agree without issue.
Investor · Seattle, WA · Member since 2016 · 25 posts · 21 votes
9y
Thank you @Robert Gilstrap prepping new lease for tenants to sign, they emailed me this morning and want to stay. Turns out the new PM company that I hired never signed a new lease with them, they just continued with the old one!
Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
9y
@Linda Dalton In GA, you don't have to sign a new lease to extend. It extends automatically or you can add an addendum.
Answer to your previous question is 'yes, lease stays in force until it's cancelled. However, it is a tenant at-will so cancelation requirement goes to 30 days notice for both tenant and landlord.
Investor · Seattle, WA · Member since 2016 · 25 posts · 21 votes
9y
Thank you @Rick Baggenstoss the tenant signed a new 1 year lease and i now self manage that property, everything worked out golden. Thank you for responding.