Rental Property Owner dies, current lease terms honored

Member since 2018 · 2 posts · 0 votes

I currently manage a rental property in Alabama, the property owner has died and I currently have a lease in place. I know that the lease runs with the property and I have to honor the lease term arrangements; however, the new owner plans to sell the home. Can I go ahead and put the tenant on notice that once the lease expires we will not be renewing her lease or do I have to wait until the expiration date of lease and THEN give 30 day written notice?

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Stephen Barnabei

Contractor · Swarthmore, PA · Member since 2016 · 41 posts · 31 votes

It depends on what the lease states. Does it say it automatically turns m2m after expiration date, is there a box checked that says the lease is terminated on that date unless extended in writing? Either way you can give the 30 day notice of non renewal 30+days before their end date. You don’t have to wait until the lease expires to give notice. Also there should be some verbiage on what happens to the lease if the property is sold, look over the lease again in its entirety.

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Stephen Barnabei
Contractor · Swarthmore, PA · Member since 2016 · 41 posts · 31 votes
8y
It depends on what the lease states. Does it say it automatically turns m2m after expiration date, is there a box checked that says the lease is terminated on that date unless extended in writing? Either way you can give the 30 day notice of non renewal 30+days before their end date. You don’t have to wait until the lease expires to give notice. Also there should be some verbiage on what happens to the lease if the property is sold, look over the lease again in its entirety.
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Cindy West
OP
Member since 2018 · 2 posts · 0 votes
8y
Thank you Stephen this way very helpful!
Cindy West
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
boy out our way and death of landlord terminates the lease.
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Mike S.
Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
8y
Originally posted by @Jay Hinrichs:

boy out our way and death of landlord terminates the lease.
Out your way is likely not legal. Lease transfers to the estate. Unless your lease specifically addresses owner death(unlikely) the estate and heirs are bound to the terms of the lease.
The lease is also legally binding on the tenant. The estate and heirs can hold the tenant to the terms of the lease.
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
8y
Originally posted by @Jay Hinrichs:

boy out our way and death of landlord terminates the lease.
Agency agreements terminate with death of client, but not leases. Leases are with the property address. (Unless OR specifically has a weird provision in their landlord tenant law)
If the property was listed or had a PM, those agreements could terminate. Cheers!
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