Ogden Utah Vacate Unit options

6 Replies

There's a buyout option , as the landlord, can i buy out the lease on inherited tenants ?

the previous owner didn't tell the tenants that the house was being sold i assume they figured it out with the walk throughs and real estate agents.

one of them has a lease for another year at least. Do I have to let it ride?

the wording wasn't super clear on who specifically the buy out option was for.

if the 2 months rent buyout is applicable to me , how do i serve it ? 

I served a normal 30 day intent to vacate form. Will this one be similar  a 30 day intent to vacate with an addendum of lease buy out +2 months rent? 

They wouldn't mind ending the lease early as long they had another home to live in.

There's two brothers , one has a government job so he would be a fantastic tenant... they have a dog. 

I have other plans for the property at the moment so I need it vacant. 

Theres a lot of info in this post, any ideas?

You have to honor any leases that you inherit when you buy a property.  That's why it's important to review them during your due diligence period.

That being said, a lease is a contract. All contracts can be renegotiated, terminated or whatever with mutual consent.  You can also have the lease agreement modified with a buyout prior to closing on the home.  But it sounds like you already closed?

There is no "service" in this situation.  The lease most likely won't have a provision for you to unilaterally terminate the lease with 30 day notice, so forget about that.  The two month buy out is just a convention or starting point.  There isn't any law or ordinance that says what the lease buyout has to be.  Your tenants might move for nothing if you help them find a new place and give them a good reference.  Just talk to them and see what they need and figure out if there's something that works for both of you.  Otherwise, you're stuck with the lease.

@Peter Petwr

Hey Peter,

Just like what William said, leases survive closing. You will need to read the lease to see if there are any ways you could terminate, but that's not likely. Your best bet would be talking to the tenants and see if you could workout some new terms.

Best of luck!

-Eli

I guess i was a bit rushed during my due diligence period. Lots of waiting for resposnes and the owners or broker didnt seem very open to much. Yet, I still bought the house so thats on me. 

I'll try a mutual agreement with the tenant,  explaining what I want and how I can help if that doesn't work i guess its fine ill honor the lease. 

@Peter Petwr

Great responses above, I agree with just talking to your tenants. That being said.. cash talks, I’ve burn a month of income to help re-home someone. If you have any investor friends in the area you can even get the ball rolling by seeing if they have any open places. Best of luck!

- Peter

@Peter Petwr

I hope this was an off market purchase. If not, your agent and the selling agent should have nailed all this down before you got to closing. Also, if there's a renter in place the Utah real estate purchase contract explains that any deposits put down when leasing should be credited to the new buyer. Any leases in place are also transferred in the sale. Reviewing those leases during the due diligence process should have been an important part of the deal. I would never want to see my buyer get in a situation where they need to evict a paying tenant.

If you’ve already closed, the tenant and their lease are now yours. Any buyout would need to be negotiated between you and the tenant. If they don’t want to leave, they really don’t have to until the lease is up as long as they’re paying.

Originally posted by @Stefanie Jensen :

@Peter Petwr

I hope this was an off market purchase. If not, your agent and the selling agent should have nailed all this down before you got to closing. Also, if there's a renter in place the Utah real estate purchase contract explains that any deposits put down when leasing should be credited to the new buyer. Any leases in place are also transferred in the sale. Reviewing those leases during the due diligence process should have been an important part of the deal. I would never want to see my buyer get in a situation where they need to evict a paying tenant.

If you've already closed, the tenant and their lease are now yours. Any buyout would need to be negotiated between you and the tenant. If they don't want to leave, they really don't have to until the lease is up as long as they're paying.

I get that it should've been more throughly looked at and as a buyer I felt a bit uninformed since I never talked to the seller agent or the seller. I couldnt gauge how they were responding very well based on what I was being told. The communication from seller -> seller agent -> my agent - Me and back was very very slow and there were deadlines. I didn't want to lose earnest money so I justified the purchase mentally not the best idea I ran what if number based in what I knew and I tried to be really realistic about it. In the end it should still work and it was the best I could find so I went with it.

The slow communication was a huge problem and the seller seemed unwilling to compromise on issues Or extend deadlines. Like I said if the tenants don't move out its fine with me as long as theyre paying but I kind of need to move into the unit within 60 days and the previous owner and his broker didn't let the tenants know anything. 

it's definitely a hassle but its worked out for the most part, the tenants are nice people I gave them plenty of time and I know moving is a huge hassle so they can make their own plans and let me know the house isnt terribly expensive on the mortgage so I can hold it.

The bank said that I shouldn't worry about mortgage fraud since they arent actively  trying to get people   but im still going to try and get in there before the 60 days are up.

even if they stay i let them know , that we could be roommates temporarily of they were okay with it. I'm being extremely Transparent with the situation on the tenant front.

it was on the MLS , but yeah next time I gotta hustle and annoy the heck out of people to get things done. I just didn't want to piss everyone off by rushing them.

the seller agent being a broker. I would think means they have a ton of experience and would be quick and organized. I only got that the feeling that they were slow , busy , and easily annoyed. 

I'm just ranting at this point but its going well for the most part.