Is New Lease Necessary with Inherited Tenants?

Question

When purchasing a small MF in Texas, Round Rock / Williamson County to be exact is it necessary to write up a new lease agreement with inherited tenants or do you just take ownership of their current lease? I know you can't change the terms on the lease as far as rent amount, length of the lease, etc.. I'm just talking about swapping the new owners name with the previous owner. Is it a Must to rewrite the lease agreement?

Joe Funari · Answer

@Nick Sheveland Texas State law requires that you honor the current lease. But no need to swap out owners names on the lease. Simply send them a letter, certified preferably, stating new owners and contact info for maintenance issues, where to send rent payments, etc. If you have a PM they should draw up the letter and send it to the tenants. But I recommend you look at the current lease and check to see when you have to give tenant notice of either increase the rents or vacate. Some could be 30, 60, or even 90 days. Depending on what the rents should be you can give the tenant a notice of increase in rents and they must accept by a certain date and sign the new lease (This is when you address change of landlord on the lease) or they have to vacate by the lease expiration date.

Nick Sheveland · Answer

@Joe Funari thank you for confirming that!