Honoring existing leases

Member since 2021 · 2 posts · 1 vote

Hello all!

When purchasing a leased property, must you always honor the existing lease? Are there any states that allow you to renegotiate or terminate the lease? I have looked at landlord/tenant law in multiple states and have not seen this scenario referenced. Also, with the eviction moratorium in place, are you allowed to simply refuse to renew an expiring lease or give 30 days notice on a month to month?

Thanks!

0 Reply

19 views

Most Popular Reply

Matt Devincenzo

Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes

I'm not aware of any state where you do not have to honor existing leases. I'm not an attorney, but I believe that is a basic premise of US contract law that all States have by virtue of being part of the US legal system. I believe this even holds true in Louisiana which does have some legal framework from it's French origins which differ from the other States.

As far as the MTM and non renewal...a clarification...there is an eviction moratorium, not a lease termination moratorium. You can non-renew and the tenant can move out, but if they do not move out then your recourse is through the courts via an eviction, and that is where you become stuck. So nothing (that I am aware of) prevents you from non-renewing or giving notice, but then you can't pursue it if the tenant won't cooperate.

1 Reply

See this reply in the discussion

3 Replies

Jump to latestLatest

Sort by

Matt Devincenzo
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
5y
I'm not aware of any state where you do not have to honor existing leases. I'm not an attorney, but I believe that is a basic premise of US contract law that all States have by virtue of being part of the US legal system. I believe this even holds true in Louisiana which does have some legal framework from it's French origins which differ from the other States.
As far as the MTM and non renewal...a clarification...there is an eviction moratorium, not a lease termination moratorium. You can non-renew and the tenant can move out, but if they do not move out then your recourse is through the courts via an eviction, and that is where you become stuck. So nothing (that I am aware of) prevents you from non-renewing or giving notice, but then you can't pursue it if the tenant won't cooperate.
1 Reply
John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
5y
A bit of correction. If a tenant's lease or month to month rental agreement has been terminated and they refuse to leave, they are then a hold over tenant and in most jurisdictions can be evicted. Most of the covid related eviction moratoriums are related to non paying tenants. Then there are those places where you can hardly evict anyone for anything but hopefully you haven't or won't acquire property in those places.
0 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y
Originally posted by @Natascha Bybee:
Hello all!

When purchasing a leased property, must you always honor the existing lease? Are there any states that allow you to renegotiate or terminate the lease? I have looked at landlord/tenant law in multiple states and have not seen this scenario referenced. Also, with the eviction moratorium in place, are you allowed to simply refuse to renew an expiring lease or give 30 days notice on a month to month?

Thanks!

Existing contracts transfer with the sale of the property and must be honored. There's always a chance you can get all parties to agree to end the lease early or adjust it.
When a lease expires, you can terminate. If they are on a month-to-month, you can terminate. The eviction moratorium only protects people that are unable to pay rent due to COVID-19 issues. It is not a blanket authorization for tenants to violate the other terms of the lease.

The DIY Landlord Book4.7248 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.