Do Landlords have a right to take possession in 60 days?

General Landlording & Rental Properties
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Do Landlords have a right to take possession in 60 days?

Kevin Barker
Real Estate Investor · Alpharetta, GA · Member since 2011 · 28 posts · 1 vote

I have a property i am considering purchasing to do a renovation but the property has a lease agreement until June of 2013. I had heard that a landlord can give 60 days notice at any point and can take back possession of a property. Is this correct?

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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y

Absolutely not true. If you buy this property the lease stays in effect. You would have to honor the remaining term of the lease.

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    Absolutely not true. If you buy this property the lease stays in effect. You would have to honor the remaining term of the lease.

    3Reply
  • Dale Osborn
    Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
    13y

    When doing your due diligence read exactly what the lease states. Some leases have a clause that the lease can be terminated by either party with a certain number of days notice (30-60-90, etc). This will be the final determination as to what pertains for that specific property.

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  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    You may be confusing giving notice when a tenant is month-to-month, which can usually be terminated in 30-90 days, depending on the type of sale and state law. If it's a term lease, then it can't be terminated just because the property is being sold. I'd make getting a copy of the lease part of the due diligence, so you can see what terms are really in there.

    You may be able to negotiate with the tenant to end their lease for a lump sum upon vacating. You may be able to negotiate a better price with the seller based on the lease situation.

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  • Kevin Barker
    OP
    Real Estate Investor · Alpharetta, GA · Member since 2011 · 28 posts · 1 vote
    13y

    Thanks for the info! I will ask to take a look at the lease during my due diligence and speak to the tenants.

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  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    13y

    Kevin Barker - both of the above answers are right. You stated the question as if there was a universal rule stating that landlords can give 60 days notice and terminate a lease. That is not true. Each state and even municipality is likely to have landlord/tenant laws that will dictate actions you are able to take as a landlord.

    Even though Dale Osborn noted that you need to read the lease closely to see if there is a clause included giving you the right to terminate the lease, that does not mean that the previous landlord knew or followed local laws. Your best best is to get a copy of the lease (which should be a basic step in due diligence) and contact an attorney who specializes in tenant evictions in the area that the property is located so that he can review and advise you on the lease. If it meets state and local laws and gives you the right to early termination, then you are in business. If not, as Jon Holdman noted, you will have to honor that lease until it expires.

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  • Dale Osborn
    Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
    13y

    When we owned an office building, I did not want any disgruntled tenants so made sure they had the opportunity to break their lease with 30 days notification on their part and 60 day notice on my part. Neither side used this portion of the lease, but it was there for their benefit.

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    I generally only do month to month leases. A long term lease is much more binding on the landlord than the tenant. In the lease I state the tenant must give 30 days notice and I must give 10. I've verified with my lawyer that's acceptable. Both mean "before the rent is due". So, I can give notice up to the 20th or so the lease is being terminated.

    Asymmetrical? Yep. So is the relationship. I've giving you a $90,000 house and you're giving me $1100 in rent. I can keep your security deposit. You can easily do $10,000 in damage to my house.

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  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    Jon Holdman I want to know more about this. It's legal in CO to give a tenant notice to terminate/vacate with only 10 days notice? Even when all other terms of the lease agreement are being met? You say it's in your lease, but I find it hard to believe there isn't some overriding tenant protection in your state law.

    Is the 10 days just for termination, or can you raise rents or change other terms with only 10 days notice?

    BTW, I have no issue with an asymmetrical agreement in favor of the landlord. It's the landlord's job to write a lease with terms that protect their asset and it's the tenant's job to enter in a contract that they can abide by. But there are so many state laws here that protect the tenant and would override certain terms, even if they were in a lease.

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    K. Marie Poe the default is 30 days. Its a month to month lease, so either party can terminate just by giving notice. No reason needed. I had this lease reviewed by an attorney several years ago, and I specifically asked about making my notice period 10 days. He said that was fine, as long as I gave notice 10 days before the next rent payment was due. I have yet to use this clause. What this really gives me is the understanding in my head that if the tenant is there its because I'm OK with them being there. Not because I'm bound by a lease.

    Even though I put 30 days notice for tenants in the lease, if it comes down to it, I'll accept notice somewhat less than that. Even if they tell me on the fifth they're leaving at the end of the month, I'll let them go. If they tired to tell me on the 25th, I would refuse and tell them they owe me another month's rent. In one case where that happened, we negotiated and agreed on a half month and they were out by about the 10th of the next month.

    The 10 days is specific to termination. But that amounts to being able to raise rents in 10 days, too, doesn't it? I terminate this lease and if you want to stay, the new one is at some other rate. In reality, if I was going to raise the rents, I would send notice about 45 days ahead of time.

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  • Dale Osborn
    Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
    13y

    For CO the laws are based on the length of the lease as far as notification periods.

    For a M-T-M lease it only requires a 10 day notice.
    For a lease under 1-year it requires 30 days notice.
    For a 1-year lease it requires 60 days notice.
    If the lease is for a period over 1-year it requires 90 days notice.

    Since Jon is using the M-T-M lease 10 days is the legal required notice time period.

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  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    Jon Holdman According to this HUD doc for CO, you can raise the rents with 10 days notice.

    "If a lease exists the rent is locked in for the term of the lease. If there is not a lease, a landlord can increase a tenant's rent by giving the following written notice: 10 days written notice before rent is due if rent is paid once a month; 3 days written notice before rent is due if rent is paid weekly or semimonthly. Mobile Home Parks are required to give 60 days’ written notice for rent increases on space when not protected by a lease for a longer period of time."

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    Thanks for the reference. I don't recall explicitly asking the lawyer about raising the rent.

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  • Drew R.
    FL · Member since 2012 · 3 posts · 0 votes
    13y

    You need to be incredibly clear on your state's laws. If you're mistaken, as to self-help, for example, you can be opening yourself to treble damages in some states.

    0Reply
  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    13y

    Kevin, just a reminder that you also have to transfer the security deposit, get any info on the condition of the property when tenant moved in, and anything else in the seller's file pertaining to this tenant to protect your interests if you become the landlord, even if you find out you can give 60 days' notice.

    0Reply
  • Eric Blackford
    Property Manager · Kissimmee, FL · Member since 2012 · 68 posts · 8 votes
    13y

    From another standpoint, you will have a tenant who is obligated to stay in the property for another 8 months and you want to throw them out? If the tenant is paying rent on time and if the renovations aren't necessary, why not wait until the tenants leave on their own? Just curious.

    As for getting them out, agree that your best bet is to get a lawyers advice. There are way too many moving parts on this that have the chance to bite you in the backside.

    0Reply
  • Kevin Barker
    OP
    Real Estate Investor · Alpharetta, GA · Member since 2011 · 28 posts · 1 vote
    13y

    Thanks for all the advice!! This is what i love about BP, you ask a simple question and you get all this great feedback from seasoned investors. I would like to provide an update though. This was a property i was looking to purchase with a HML as a flip. Come to find out it was being sold by a wholesaler who had been working with the seller for over a year. When i ask for the assignment contract it proposed an assignment fee which would be on the HUD and a marketing fee outside of closing that i would pay. THis way for him the seller did not see his big profits. THe assignment fee was close to 3k and the marketing fee to be paid by me outside of closing was close to 13k!! Wow nice profits. Anyway when i sent over to HML he obviously stated they would not do a deal where all disbursements were not on HUD. I did not agree with wholesalers practices either so i decided to walk. NOt to mention the uncertainties of a tenant who had 8 months left on the lease

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  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    Putting the assignment and marketing fee aside, you previously wanted the deal for the price the wholesaler was asking, correct? So is the thing that is now getting the way your knowledge of his profit? The deal structure? The structure could be changed. Or, was it not really a good deal?

    0Reply
  • Kevin Barker
    OP
    Real Estate Investor · Alpharetta, GA · Member since 2011 · 28 posts · 1 vote
    13y

    I can get past the profit because it is still a deal, but i just do not like him hiding a fee from his seller. Also the HML stated they would not do the deal because everything should be on the HUD.

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  • Account Closed
    CA · Member since 2011 · 762 posts · 182 votes
    13y

    Kevin Barker, in addition to the lease itself, you might consider getting a Tenant Estoppel Certificate. It's a summary of the lease terms signed by the tenant and landlord. Sometimes tenant and landlord make side deals, reduced rent for mowing lawn, amount of security deposit, etc, that doesn't show on the lease. Once tenant signs Estoppel, (s)he can't later claim differently.

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