I will be closing on the 26th of March on my first investment property- a two family which comes with tenants on a month to month lease. The property needs a lot of cosmetic work and the type of loan I’m getting requires me to live there. Can anyone give me advice on the best way to approach the tenants to let them know that they will need to leave when the lease is up?
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
5y
Depending on where you reside, you'll be required to give a certain amount of notice of non-renewal of their lease. Could be 30 or 60 days or more.
Send a letter indicating that their lease will not be renewed as of X date and that you wanted to let the know as soon as possible so they can begin making arrangements to move out. You can inform them that their deposit will be returned under the conditions of the lease and whatever else you are legally required to do before they leave. Just keep it simple and to the point.
Atlanta, GA · Member since 2016 · 53 posts · 78 votes
5y
Hi Dawna - I am glad you are able to let the tenants live out their lease. A certified letter is a must. I also sent an email detailing the agreement and had the tenant sign it and send a pic. I actually paid them to terminate the lease early because I wanted to turn it around quickly. Here is some of the language in my email...
Per our correspondence, the following note details the early termination agreement we discussed. You have decided to terminate the lease of XXX Way SW Atlanta, GA early. I have agreed to waive the early termination fee, and if you have moved everything out by August 31, 2018, I will pay you an additional $XXX (via Venmo) when we meet to turn over the keys. After you have moved out, I will review the move-in check in list from 4/1/17 and inspect the property. I will send you pictures of anything I have identified as needing repair. If repairs are needed, I will get estimates. Per the lease, I will return your earnest money, minus any required repairs, within 30 days.
Thanks for leaving things as closely to how you found them as possible :)! Please print this note out, sign and date and send me a picture of it at your earliest to confirm. I am sending you positive thoughts for packing. Not the easiest task!