Sold rental - need tenants to move early

[Kimberly Vallance]

Hello Bigger Pocketers!

I have accepted an offer to sell a rental, but...it means my tenants have to leave early. So, it's me breaking the lease agreement not them. They need to move out 1 month early.

My lease requires everything in writing. When I try to look up something like 'landlord breaking lease to sell property', the results are more about the landlord doing things to make it extremely uncomfortable to get the tenants to leave. These are the best tenants I've ever had! They pay on time, and they take great care of the property. Honestly, I'm really bummed I don't have somewhere else for them to move lined up! I'm looking - I've been working on lining up some 1031 exchange possibilities, but nothing has panned out yet.

They know I was putting the property up for sale (I had given them 2 months notice so they could try to buy it, but that didn't happen) - there have been several walkthroughs, too.

I'm meeting with them on Monday as I didn't want to tell them over the phone. I know this is supposed to be a business, but I've become attached the people. I'd normally be scheduling the annual inspection about now and discuss renewal terms. Unless things go really wonky, they'll get the full security deposit back. I don't have anything in the lease about me breaking it early unless they are in violation of the terms. I need to add something, obviously.

So...do I offer cash for keys? Just not collect rent for that 1 month? 

If anyone has a rental unit opening up at the end of August, please let me know! I'd recommend this couple without any reservations. 

[Mike McCarthy]

@Kimberly Vallance in most states, you can’t kick the tenant out just because you’re selling the house. Their existing lease transfers to the new owner. But some states do allow forcing a tenant to move out if the owner is moving in. BUT, I don’t think this can happen before closing.

Are you sure the new owner is moving in? If they are buying the property for an investment, I’d sure be happy with good, paying tenants staying.

So, step 1 is to understand your state rental laws. Step 2 is talk to the tenants. Maybe you can ask them nicely to move out a month early. Or maybe give them a $500 moving incentive to live out early.