[Landlord-AZ-US] Question: Procedure for Lease Nonrenewal

Member since 2020 · 25 posts · 3 votes

I have a question about my current tenant. They are inherited tenants from the previous owner. There is quite a bit of damage on the unit before I bought the property. We plan not to renew their lease because we would like to renovate their unit after the lease expires. I found this page https://www.azleg.gov/ars/33/02143.htm which states that I have to give them a reason for nonrenewal and there are different requirements on the notice for different reasons. My question is

· For the reason part, how much detail do I have to put in. Can I say: Renovation of the unit

· How many days of notice do I have to give them?

· If it is 30 days, I understand that it is hard to find a rental right now, can I offer them 60 instead of 30 days?

Any help is appreciated. Thank you very much!

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Matt Ziegler
Rental Property Investor · Colorado Springs, CO · Member since 2020 · 433 posts · 284 votes
5y
not sure about the laws in AZ. but we recently had this come up with a property we bought in Co. we told the tenants when we purchased the place( Oct 2020) that we planned to do major renovations once their leases expired( March and April 2021). told them they would have to move out and then reapply if they were interested. Once they reviewed our rental criteria they decided to mover elsewhere.
We at not completing the renovation and have new residents who met the criteria, passed the back ground/ credit check and everyone is happier!
Best of luck, Cheers!
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y
Originally posted by @Ximing Feng:
I have a question about my current tenant. They are inherited tenants from the previous owner. There is quite a bit of damage on the unit before I bought the property. We plan not to renew their lease because we would like to renovate their unit after the lease expires. I found this page https://www.azleg.gov/ars/33/02143.htm which states that I have to give them a reason for nonrenewal and there are different requirements on the notice for different reasons. My question is

· For the reason part, how much detail do I have to put in. Can I say: Renovation of the unit

· How many days of notice do I have to give them?

· If it is 30 days, I understand that it is hard to find a rental right now, can I offer them 60 instead of 30 days?

Any help is appreciated. Thank you very much!

If the tenant is on a written lease with a fixed term, no notice is required. Their lease expires on the written termination date and they are expected to vacate by that date. If they are on a month-to-month agreement, then you are required to give them 30 days notice. In either case, I recommend you give them written notice 30 days prior just to ensure there's no confusion.
I don't see anything in the law that requires you to give a reason but it shouldn't hurt. Keep it short and professional. If the tenant tries to negotiate more time, tell them you've already got contractors lined up to start work immediately and can't adjust.

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Debbie C.
Member since 2019 · 118 posts · 74 votes
5y
@Ximing Feng
I have sfh's in Arizona, and in the past when we do not want to renew a lease to a tenant, we give them written 30 days notice (which is what our lease calls for.) We are not required to give a reason for a non-renew, and we don't.
I will add to this by saying that because our rental market is so tight right now, I would consider giving longer notice.
Hope this helps
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Doug McVinuaPro Member
Property Manager · Queen Creek, AZ · Member since 2016 · 608 posts · 426 votes
5y
@Ximing Feng What type of property is this? The laws are different for mobile homes versus single family.
You want to first read your lease, what notice is required, and then secondly know what laws apply depending on the property type.
The most commonly utilized Arizona lease by default requires a 30-day notice prior to the renewal date, which is typically on the 1st of the month. For example, a 30-day notice given in May would mean the tenant would need to vacate the property at the end of June. Notice given June 1st would mean the tenant would vacate at the end of July.
We send notices via Certified mail at least 5 days prior to the end of the month. We generally do not give a reason for a non-renewal in the housing side of the business. Mobile homes in parks are a different animal. Reasons give tenants a reason to contest, argue, try to change your mind, etc.
The rental market is white hot and good tenants, no great tenants are out there.

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Ximing Feng
OP
Member since 2020 · 25 posts · 3 votes
5y
@Matt Ziegler
Thank you very much! And I agree! I will definitely screen my tenant more carefully! :)
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Ximing Feng
OP
Member since 2020 · 25 posts · 3 votes
5y
@Debbie C.
You are right! I realized that the link that I shared are actually for mobile homes. The lease will end on Aug 31 this year. Now I am planning to give the notice in mid-July. Thank you very much, Debbie!
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Ximing Feng
OP
Member since 2020 · 25 posts · 3 votes
5y
@Nathan Gesner
On the lease, which I got from BP, it states that once the lease expires, the tenant has to move out (shown in the picture below). However, if I accept the rent after the expiration date. It will automatically transfer to Month to Month. I guess that means I don't even have to give the notice if I don't want to? I will still give them notice but I am just curious about how this works.
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Ximing Feng
OP
Member since 2020 · 25 posts · 3 votes
5y
It is a triplex but I think it might be. Below the lease states that once the lease expires, the tenant has to move out (shown in the picture below). However, if I accept the rent after the expiration date. It will automatically transfer to Month to Month
I am having a hard time finding the law about sending notice for nonrenewal. I checked the ARS and Landlord Tenant Act but still could not find any guide on this part. It could be that I somehow skipped it though. Or maybe it all depends on the lease?
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y
Originally posted by @Ximing Feng:
@Nathan Gesner
On the lease, which I got from BP, it states that once the lease expires, the tenant has to move out (shown in the picture below). However, if I accept the rent after the expiration date. It will automatically transfer to Month to Month. I guess that means I don't even have to give the notice if I don't want to? I will still give them notice but I am just curious about how this works.

From what I have seen, you do not have to give any notice in AZ. They are expected to be out by the termination date.
HOWEVER...I don't recommend doing that. There's a good chance they don't remember what the lease says, they don't understand it, or they don't want to abide by it.
Give them written notice 30 days prior so there is no confusion.
Dear Tenant,
This is a reminder that your lease is set to expire on [DATE] at 11:59PM. We intend to renovate the unit and will not be renewing your lease. Please contact us for instructions on returning the keys, final walk-through inspection, etc. We will also need you to provide a forwarding address for the refund of any deposit. You can email me at [email protected]
Best regards,
Landlord

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Ximing Feng
OP
Member since 2020 · 25 posts · 3 votes
5y
Great advice! Will do! Thank you very much!
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