How to: Not renewing lease on renter in owner occupied duplex

Question

Hi all, looking for some guidance as a first time landlord.

I'm closing on my first duplex in CT next week. One unit is vacant (that will be occupied by me) and the other unit has a renter whose lease is up in Sept/30.

I do not wish no renew the lease for this renter as I'd like to make some renovations on that unit before renting it out again. The house is in general good condition, but apt is rented under market value.

The seller refused to give notice to the current renter, they also refuse to request the renter to clear their stuff from the attic, basement and garage, all of them currently being used as additional storage (even though none of this is stipulated in the lease agreement).

I would like to give notice to the renter, as soon as I take possession of the house that I will not be renewing their lease. What's the best way to about this, as I can already anticipate the tenant will be less willing to cooperate.

No sure if this is relevant, but for context, the unit is current rented with Section8 program.

I appreciate your input and advise.

Scott M. · Answer

Not meaning to sound like a smart a$$ but the best way to give them notice is to give them notice. Lease will expire in less than 30 days after you buy it so once you buy it you inform then the lease will not be renewed Assuming you have the Sec. 8 contact info you inform the Sec. 8 office/worker of the same info. Chances are they will not be out but at least you have given notice and then you can take the next steps on both fronts, with the tenant and Sec. 8.

Next deal, make this stuff part of the PA. And if you don't know it at the time you write the PA then make it part of the inspection contingency. You should have had all of this data by then. Great lesson to learn for future deals.

Mali R. Diez · Answer

Thanks all. Here is what I learned for future reference and in case is useful to others:

1) When buying a property that has Section 8 Tenants, new owner will process the change of ownership one the sale is complete. For that the new owner will have to show proof of purchase to the Housing Authority.

2) The agency managing Section 8 will honor the previous the inherited contract and the landlord will have to carry it through term. Then new owner will be forced to sign a new 12 month lease (it cannot default to month to month). If new landlord wants month-to-month, then this agreement/lease will have to be signed by the previous owner BEFORE the close the sale.

3) At least in CT, for Section 8 tenant one needs to give 60 day notice to vacate for non-renewal. And if new owner didn't process the transfer of ownership properly they will not only not get payment one the original lease is expired, they will be also obligated to sign a new 12 month agreement with Housing Authority.

So lesson here is: even if it seems straightforward it is not, make sure you are on top of due diligence and do you rely on realtors.

Helpful resources:
--> Section 8 Plan for 2021
--> Manchester CT Housing Authority
--> Section 8 office for Manchester CT Housing Authority: point of contact is Jackeline Mercado | (860) 643 2163 ext 112

Helpful resources:--> Section 8 Plan for 2021--> Manchester CT Housing Authority--> Section 8 office for Manchester CT Housing Authority: point of contact is Jackeline Mercado | (860) 643 2163 ext 112

Bruce Woodruff · Answer

Have you checked to see what your state will allow? If you follow these forums you will hear a lot about certain types of states being very tenant friendly to the detriment of the landlord. And why won't the seller (current owner) give notice? Or force the tenant to remove their belongings from the common areas?

What does your Realtor say? This doesn't sound right.......

How to: Not renewing lease on renter in owner occupied duplex

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