Long Lake, MN · Member since 2018 · 8 posts · 1 vote
I recently purchased a duplex which will be owner-occupied with an established renter on the other side. Do you suggest that I create my own lease for the renter's or just allow their current lease to run its course? (Minnesota)
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Eric Sill The correct answer is you must keep the current lease. If its month-to-month you can terminate the current lease and offer a new one. If it's a term lease you must legally honor it until the end of the lease. That being said you can always negotiate a new lease by giving them something they want such as:
Rental Property Investor · Lake Hallie, WI · Member since 2015 · 292 posts · 144 votes
6y
By law if the lease is in term you have to honor it. However if you ask them to sign a new one they might not know that. If it's a weak lease you might consider that. Congrats!
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Eric Sill The correct answer is you must keep the current lease. If its month-to-month you can terminate the current lease and offer a new one. If it's a term lease you must legally honor it until the end of the lease. That being said you can always negotiate a new lease by giving them something they want such as:
Long Lake, MN · Member since 2018 · 8 posts · 1 vote
6y
Appreciate the prompt responses gentlemen! This is the first property I've house hacked AND managed so I appreciate your help with this aspect of my new adventure.
However, make sure your tenants know WHO and HOW they should pay rent moving forward. Many leases have provisions written in like "send rent checks to this PO box." You could have tenants, without intending too, continue to pay the old landlord because they are just following the principles in the lease!
Rental Property Investor · Lake Hallie, WI · Member since 2015 · 292 posts · 144 votes
6y
They also need to know where to send other mail (or serve you). If you don't it could slow down an eviction. I don't think that it can be a PO box. I know this is going to be rather obvious because you'll live next door but it's a good fyi for the future. Familiarize yourself with the landlord and tenant rules. Here is a link from the AG https://www.ag.state.mn.us/Consumer/Handbooks/LT/default.asp You should be able to get a hard copy at the courthouse. Also don't forget the legal requirements for housing built before 1978 and lead disclosures. (if applicable). You have to have them sign a form and give them a lead paint info handbook. They also need to get a copy of the lease and signed acknowledgement of receipt. I think I need a beer instead of a coffee!!