Yes, when you purchase a property existing leases still must be honored. Sometimes those leases specifically cover certain rights or obligations of the tenant or new landlord in the event of a transfer or sale, but that is probably the exception, not the norm.
In terms of tenant screening: I suppose you could still screen the tenant to a certain degree, in that you could look up public records. But it would likely be hard to then use that information to terminate a tenancy. Thus screening may be a moot point once you already have the tenant.
Please note I am not an attorney, nor is this legal advice.
when purchasing rental property you do not have the option to screen existing tenants. After a purchase, must you honor existing leases?
Hello Tom,
This is a great question, and it is something I see a lot. When purchasing a property with an existing tenant, yes you must adhere to the old lease, but of course you can check to see what kind of tenant they are.
The good thing is leases don't last forever. When the lease expires you may offer them a renewal with your own language in it. If they want to stay they have to sign it, if not you will be able to find a replacement.
This is always a tricky situation. Please let me know if you have any questions.