Inheriting MTM Resident
Hi Everyone!
I'm in the process of purchasing my 2nd multifamily (woooo!!) and had a quick question. One of the individuals is on a MTM lease? Am I able to immediately request that they sign a renewal? The lease specifies a 30 day notice from either party is required for the lease hold over.. If they opted to not sign a renewal, I would be able to just 30 day notice them, correct? Thanks in advance for all of your help - I love the hindsight and these forums are so great!
Alex
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#1 Questions About BiggerPockets & Official Site Announcements Contributor
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Hi Alex. I believe this is more of a state specific question, but over here next door in Colorado, you would have to give them a 30-day notice to change the terms of their lease, once you purchased the property. Some states require a 60-day notice, so make sure you are following your state's law.
How long have they been a MTM tenant? Do you want them to sign a 1-year lease, or would you really rather they leave? Do you know how the current landlord qualified them for their lease? You don't want to have them sign a 1-year lease, only to discover they don't pay the rent on time and you then have to start the eviction process.
If the current owner didn't use the same qualifications that you would use, I would run a background check on them at your own expense - they are already there and if it comes back fine it is a small price to pay for the peace of mind. If they don't make the cut, serve them with the notice to vacate that complies with your state laws.
Congratulations on your purchase and good luck!
