Curious as to if anyone had ever purchased a house with a tenant lease in place?
Do you have to accept all the terms as presented or can you modify or remove the tenant if wanted?
lease or month to month agreement? If a lease, has the term of the lease expired (which then converts automatically to a month to month)?
If a lease and the lease is still within its active term (ie has not expired and then converted into a month to month) then you as the new owner are bound by the terms of the lease but only till the end of the lease term. Read the lease, it may say certain things can be changed with an x days notice or whatever. You can always ask the tenants to sign a new lease (or month to month) with whatever changes you wanted. If you phrase the request correctly most/all will assume they have to sign a new lease with the new owner. You can even sweeten the deal with "sign lease with new owner within x days and receive..."
If tenant is on month to month, or if original lease has gone beyond its term and therefore has converted to a month to month, then simply send notices of "changes to tenancy that will take effect in x days". Certain changes can be made with 30 day notice, some with 60 days notice etc. You can look that up in your Oregon Rental Housing Association (ORHA) Law Manual which I assume you have or will get and will also join the association and your local Rental Owners Group.
With the seller's permission you can start the process while in escrow (though the actual notice of the changes has to be from the owner so have their signature on whatever you send while in escrow).
Hope that helps, hope I'm right, hope you get tbe ORHA Law book and verify if I'm right. Congrats on getting a deal in escrow.
Is the lease still effective? When does the current lease expire? You have to wait until the current lease expires to change any terms or remove tenant. You can terminate the lease to remove tenant, after the lease expires. You have to know Oregon Tenant Law, specifically Multnomah county law if the property is in Multnomah county. (slightly different than Oregon tenant Law in regards to rent increase) Get a copy of the lease as part of your due diligent. Best of luck!
Thanks for the replies. I am curious as to if one could evict the lease tenant if they are going to use a property for a primary residence?
If you buy a property that is leased, you take it subject to the lease and all the terms. So no, you cannot evict the tenants, change the lease, etc. However; you may be able to buy out their lease. The question is, why are you buying a property with a lease if you aren't willing to honor the lease? Put yourself in the tenants position, they signed a lease over a month to month, and wanted or expected certainty, and they should have it. On the other hand, maybe they had no other options at the time, so ask them. Tricking them into thinking they have to sign a new lease because most tenants think that's the case lacks integrity,
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