Investor · Oviedo, FL · Member since 2014 · 90 posts · 5 votes
Today, I have a closing for single family home which is rented to section 8. The lease expires on Feb 2015. My question is - do I have to create new lease for tenant for reminder of lease time? Or how to tenant to notify about ownership and about lease?
Investor · Eureka, CA · Member since 2014 · 233 posts · 222 votes
12y
In general, when purchasing an occupied unit, its definitely preferable that you have them sign your own lease or rental agreement when you're able, but you'll need to honor the current lease unless you agree to mutually terminate it. As for your housing authority, I would contact them to ask what paperwork you will need to provide them to prove that you're changing ownership of the property. If they operate as the PHA does locally here, they'll ask for documentation of the closing, a copy of the new rental agreement/lease (if you get a new one), they'll provide a new HUD lease addendum for the lease to be completed as a new landlord (so that their agreement is with you and not the previous landlord), and ask for your payment info so they can send you your monthly payment. They will not need to inspect again because of the sale, they'll just remain on their yearly inspection schedule.
Investor · Eureka, CA · Member since 2014 · 233 posts · 222 votes
12y
In general, when purchasing an occupied unit, its definitely preferable that you have them sign your own lease or rental agreement when you're able, but you'll need to honor the current lease unless you agree to mutually terminate it. As for your housing authority, I would contact them to ask what paperwork you will need to provide them to prove that you're changing ownership of the property. If they operate as the PHA does locally here, they'll ask for documentation of the closing, a copy of the new rental agreement/lease (if you get a new one), they'll provide a new HUD lease addendum for the lease to be completed as a new landlord (so that their agreement is with you and not the previous landlord), and ask for your payment info so they can send you your monthly payment. They will not need to inspect again because of the sale, they'll just remain on their yearly inspection schedule.
Memphis, TN · Member since 2013 · 969 posts · 524 votes
12y
Same lease will be good, but introduce yourself if you don't have a property manager managing the property. Congrats on your investment I love these type of investments especially if you buy in at the right price with equity and guaranteed income coming in already.