Author Topic: Who should kick out tenant? Current or future owner?  (Read 7870 times)

Crazydude

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Who should kick out tenant? Current or future owner?
« on: April 20, 2016, 07:41:11 AM »
I just had an offer accepted on a duplex, both units are occupied, with lower unit lease expiring at the end of May. I will be occupying the lower unit after closing.

So the question is, should I be the one to tell the tenant they cannot renew and have to leave, or the current owner?

My opinion is the current owner, because A: they're the owner, and B. What am I suppose to do, randomly knock on their door one day and tell them? I don't really picture myself as having that authority when I don't technically own the property.

Would still like to hear others' thoughts on this.

Thanks!

---EDIT---

This question was brought up by my realtor. I already know what I'm going to do: review lease, let owner know I plan on occupying, and ensure he notifies the tenants. I'm asking for  people's thoughts here b/c it seems like it could go both ways, and I thought it was an interesting topic.
« Last Edit: April 20, 2016, 10:48:59 AM by Crazydude »

iamlindoro

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Re: Who should kick out tenant? Current or future owner?
« Reply #1 on: April 20, 2016, 08:01:32 AM »
The current owner is responsible for managing tenants for the duration of their ownership. You are responsible for managing tenants from the day you take ownership, including honoring any and all leases in effect.  If you will not have closed by the time the tenant's lease expires, and if the seller has agreed not to renew the lease, then it is their responsibility to inform the tenant of the non-renewal.

If you did not state as a term of the offer that the upper unit must be vacant at close, then you're really at the mercy of whatever the seller decides to do.  They could technically renew the lease if they wanted to (though it would be silly to piss off your buyer), notify the tenant to vacate, or allow it to go month to month. The most important element is what the lease says-- if it says that the lease is renewed automatically for a one year duration, then you need to make sure the seller knows that you need the tenant out on close.  If it automatically becomes a month-to-month term, then either the seller can clear them out, or you can give them a 30 day notice when you take ownership.

TL;DR: Find out the terms of the lease and communicate your expectations to the seller clearly. If I were in the seller's position, I would be very anxious about kicking out a paying tenant for a buyer who may or may not make it all the way to closing. I would feel much better about getting the tenant on a month-to-month lease and letting the buyer move them out themselves.

bobechs

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Re: Who should kick out tenant? Current or future owner?
« Reply #2 on: April 20, 2016, 08:02:29 AM »
I'll do it for you.

For a hundred bux, that is.

Crazydude

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Re: Who should kick out tenant? Current or future owner?
« Reply #3 on: April 20, 2016, 08:22:27 AM »
I'll do it for you.

For a hundred bux, that is.

Except I can't hire you to kick out a tenant of a property I don't own.

By the time we close, the tenant will have about 10 days before their lease ends. I'm awaiting a copy of the lease from the owner, but they know we will be occupying the lower unit.

therethere

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Re: Who should kick out tenant? Current or future owner?
« Reply #4 on: April 20, 2016, 08:31:11 AM »
Have you talked this over with the owner specifically? Just because you told him you intend to occupy the unit does not mean he has acted on it. He could very well renew the lease or let it slide into month to month status (if the lease allows). If it goes to month to month status you'll have a month gap before you can move in. You can't just kick a tenant out on 10 days notice just because you bought the place. One of the conditions of sale should have been to inform the tenant that their lease will not be renewed.

Get on the same page with the owner ASAP. If for whatever reason the lease goes month to month and you still want them out quickly I would consider offering cash + moving expenses to the tenant.

bobechs

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Re: Who should kick out tenant? Current or future owner?
« Reply #5 on: April 20, 2016, 08:32:59 AM »
I'll do it for you.

For a hundred bux, that is.

Except I can't hire you to kick out a tenant of a property I don't own.

By the time we close, the tenant will have about 10 days before their lease ends. I'm awaiting a copy of the lease from the owner, but they know we will be occupying the lower unit.

Well, I wouldn't actually kick them anyway.

I don't know why you keep coming back to this kick thing...

I'd just inform them of your plans for the property post-sale and give them your contact information once they determine what their rights as tenants might be.

But you are the one that seems a bit squeamish about doing that.  Oh, and that kicking thing, too.

Bigsacks

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Re: Who should kick out tenant? Current or future owner?
« Reply #6 on: April 20, 2016, 09:18:02 AM »
"What am I suppose to do, randomly knock on their door one day and tell them?"

If you cant do this then you cant be a landlord...lol

Yes, absolutely go knock on their door, explain the situation and explain that they will have to move out as soon as your lease with them is over.


Lol......

I am always amazed at peoples inability and fear of communicating with others.....

bobechs

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Re: Who should kick out tenant? Current or future owner?
« Reply #7 on: April 20, 2016, 09:20:30 AM »
"What am I suppose to do, randomly knock on their door one day and tell them?"

If you cant do this then you cant be a landlord...lol

Yes, absolutely go knock on their door, explain the situation and explain that they will have to move out as soon as your lease with them is over.


Lol......

I am always amazed at peoples inability and fear of communicating with others.....


Hey!  You're breaking my rice bowl, man...

Crazydude

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Re: Who should kick out tenant? Current or future owner?
« Reply #8 on: April 20, 2016, 10:09:38 AM »
"What am I suppose to do, randomly knock on their door one day and tell them?"

If you cant do this then you cant be a landlord...lol

Yes, absolutely go knock on their door, explain the situation and explain that they will have to move out as soon as your lease with them is over.


Lol......

I am always amazed at peoples inability and fear of communicating with others.....

I didn't say I fear communicating with them. I have a few rentals, I know how it works. But if I was one selling the property, I wouldn't want the buyer (especially before closing) to be going to my tenants and giving them instructions. At least not without my permission.

And "kicking" is not the right term I understand. They're not really being kicked out, just lease expiring.

Daleth

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Re: Who should kick out tenant? Current or future owner?
« Reply #9 on: April 20, 2016, 10:53:57 AM »
Have you talked this over with the owner specifically? Just because you told him you intend to occupy the unit does not mean he has acted on it. He could very well renew the lease or let it slide into month to month status (if the lease allows). If it goes to month to month status you'll have a month gap before you can move in.

Not necessarily. In the best of all possible worlds, with a cooperative tenant, you'll have a one-month gap before you can move in. If the tenant is uncooperative, you'll have to evict them--and depending on how things work in your state, that process could easily take 2-3 months.

So, get the seller to tell the tenant it won't be renewed and if AT ALL possible, DO NOT close until the tenant has moved out.

Crazydude

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Re: Who should kick out tenant? Current or future owner?
« Reply #10 on: April 20, 2016, 11:22:26 AM »
Have you talked this over with the owner specifically? Just because you told him you intend to occupy the unit does not mean he has acted on it. He could very well renew the lease or let it slide into month to month status (if the lease allows). If it goes to month to month status you'll have a month gap before you can move in.

Not necessarily. In the best of all possible worlds, with a cooperative tenant, you'll have a one-month gap before you can move in. If the tenant is uncooperative, you'll have to evict them--and depending on how things work in your state, that process could easily take 2-3 months.

So, get the seller to tell the tenant it won't be renewed and if AT ALL possible, DO NOT close until the tenant has moved out.

That would be ideal. We will be closing roughly ten days before their lease expires. Not sure yet the terms of the lease, but I'm guessing a 30 day notice is required for be tenant, so as long as they are cooperative, I could move in mid June - end of June. I think what even makes my original question a question at all is that the closing date is so close to the end of lease.

Tris Prior

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Re: Who should kick out tenant? Current or future owner?
« Reply #11 on: April 20, 2016, 12:13:55 PM »
I'm confused - do the tenants know the building is for sale? Has the current owner talked with them at all about this? It sounds like he/she has not.... which just seems weird to me.

I am (well, I may soon be) the tenant in this situation. Our building has been for sale for a while now and our landlord has always been very upfront about what's going on. Basically telling us that he hopes to sell to someone who will want to keep all of us as tenants, but if the new owner wants us out we have X days to vacate (this is also in writing in our lease). I can't imagine how the tenants *wouldn't* be aware it's for sale, given how many realtors and prospective buyers have been traipsing through our apartment over the past year. And if they're aware it's for sale, are they not asking questions as to what it might mean for their tenancy?

As a tenant I'd expect to hear this news from the seller, not the buyer. Especially before closing - maybe I am just a suspicious urban dweller but I would give serious side-eye to some dude I don't know contacting me and saying, "oh yeah, sorry, you have to move out."

Crazydude

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Re: Who should kick out tenant? Current or future owner?
« Reply #12 on: April 20, 2016, 01:58:29 PM »
I'm confused - do the tenants know the building is for sale? Has the current owner talked with them at all about this? It sounds like he/she has not.... which just seems weird to me.

I am (well, I may soon be) the tenant in this situation. Our building has been for sale for a while now and our landlord has always been very upfront about what's going on. Basically telling us that he hopes to sell to someone who will want to keep all of us as tenants, but if the new owner wants us out we have X days to vacate (this is also in writing in our lease). I can't imagine how the tenants *wouldn't* be aware it's for sale, given how many realtors and prospective buyers have been traipsing through our apartment over the past year. And if they're aware it's for sale, are they not asking questions as to what it might mean for their tenancy?

As a tenant I'd expect to hear this news from the seller, not the buyer. Especially before closing - maybe I am just a suspicious urban dweller but I would give serious side-eye to some dude I don't know contacting me and saying, "oh yeah, sorry, you have to move out."

The tenants know it's for sale, they were there when I looked at the place. This is only day 3 since my offer was accepted, so I'm not sure yet if the current owner has told them I'll be occupying. My point is simply that when they are notified, it should be from their current landlord, like you said.

Flynlow

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Re: Who should kick out tenant? Current or future owner?
« Reply #13 on: April 21, 2016, 10:54:30 AM »
Can you move the closing back 11 days and just write into your contract that the unit has to be vacant by then?  Walk through the night before, then head to closing the next day.  Soup.

If your offer was only accept a few days ago, I'm assuming you haven't locked financing yet or anything.

Jim2001

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Re: Who should kick out tenant? Current or future owner?
« Reply #14 on: April 21, 2016, 06:39:46 PM »
As a seller, I'm not giving my paying tenants notice to vacate until the deal is closed.  What if it falls through (and it happens)?  Then I'm left with an empty unit, which makes it less desirable for a future investor and my bank account.

You will own the responsibility when you own the building.

In hindsight, you probably shouldn't have made an offer without having obtained copies of the the leases.

K-ice

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Re: Who should kick out tenant? Current or future owner?
« Reply #15 on: April 21, 2016, 08:19:45 PM »
Just be sure you know your rules.

For example Quebec has some of the most strict rules I have seen.

(Not that you are from Quebec. But I wanted to post this crazy example.)

You must give notice 6 months before the end of the lease. Most places are on a July 1 to June 30th lease.

So if you bought a place in Quebec today, it is automatically renewed until June 30th 2017. Yes you would have to wait over a year before you move in.

Notice must be given by Dec 31st for an owner to move in the following July.

Some people get around this by paying for the tenent to leave. The most I heard was $3000.





Weedy Acres

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Re: Who should kick out tenant? Current or future owner?
« Reply #16 on: April 22, 2016, 07:39:52 AM »
Make sure if the tenant us still there at closing that you get an estoppel letter so the tenant doesn't run off with appliances he doesn't own.  And get the security deposit transferred to you, as you will be responsible for returning it to the tenant.

Cassie

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Re: Who should kick out tenant? Current or future owner?
« Reply #17 on: April 26, 2016, 03:09:04 PM »
When we were young we bought a 2 unit that was occupied and we intended to live in the top because it was bigger.  The renters on top knew we were buying it to live in and did not have a lease. Well we close on the house and they refuse to leave.  The couple is 2 men in there 40's with no kids.  WE have to move in because I am about ready to give birth and have 2 other small children. WE can't afford to have 2 payments. So DH and I finally tell them if they are not out in a week we will move in with them and they can see how they like living with 3 little kids. They moved out quickly.

Crazydude

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Re: Who should kick out tenant? Current or future owner?
« Reply #18 on: April 29, 2016, 09:48:27 PM »
When we were young we bought a 2 unit that was occupied and we intended to live in the top because it was bigger.  The renters on top knew we were buying it to live in and did not have a lease. Well we close on the house and they refuse to leave.  The couple is 2 men in there 40's with no kids.  WE have to move in because I am about ready to give birth and have 2 other small children. WE can't afford to have 2 payments. So DH and I finally tell them if they are not out in a week we will move in with them and they can see how they like living with 3 little kids. They moved out quickly.

That got them out quicker than an eviction!

HipGnosis

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Re: Who should kick out tenant? Current or future owner?
« Reply #19 on: May 02, 2016, 01:33:06 PM »
When we were young we bought a 2 unit that was occupied and we intended to live in the top because it was bigger.  The renters on top knew we were buying it to live in and did not have a lease. Well we close on the house and they refuse to leave.  The couple is 2 men in there 40's with no kids.  WE have to move in because I am about ready to give birth and have 2 other small children. WE can't afford to have 2 payments. So DH and I finally tell them if they are not out in a week we will move in with them and they can see how they like living with 3 little kids. They moved out quickly.
That got them out quicker than an eviction!
And didn't have to threaten to do a home birth in a wading pool in the living room!

HipGnosis

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Re: Who should kick out tenant? Current or future owner?
« Reply #20 on: May 02, 2016, 01:36:38 PM »
The missing, key piece of this puzzle is:  when is your closing date?

And you're a unclear about 'intending to occupy the lower unit'.   If you don't have that clearly spelled out in the offer, and don't close until after the current tenant renews, you could be SOL for a year.

Crazydude

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Re: Who should kick out tenant? Current or future owner?
« Reply #21 on: May 03, 2016, 04:30:31 AM »
Well I had to back out of this deal - inspection revealed $60k of repairs. Seller was unwilling to negotiate.

I'm a red panda

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Re: Who should kick out tenant? Current or future owner?
« Reply #22 on: May 03, 2016, 06:34:38 AM »
Well I had to back out of this deal - inspection revealed $60k of repairs. Seller was unwilling to negotiate.

That sucks.

But also shows why a seller isn't going to kick out tenants pre-emptively.