Renewal of lease/property on the market : ezLandlordForms

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Renewal of lease/property on the market

Wendy C

started a topic almost 6 years ago

My tenants have a current lease that renews on April 1st. They want to sign another year lease NOW for April 1st 2019-2020. If we sell the property before the new lease takes effect is it still legally binding? In other words, I would honor their lease now through April 1st if the property sells but would they be protected through April 2020?

3 Comments

Matthew M

said almost 6 years ago

It depends on the state. Some states require that new owners must honor existing leases while other states allow leases to terminate at time of sale. A quick google will give you an answer. In my opinion (30+ years as a landlord), the tenant in question knows you're selling and they're afraid that the new owner will raise rent, hence the request. Many buyers (and their banks) like to see a tenant lease that carries over past the sale as it determines risk. If I were sitting in your shoes, As April is less than two months away, I'd wait until the end of this month and, if no viable offers, I'd sign that lease just in case the building sits on the market for 4-5+ months. Just me.

Jahfwkwi J

said over 5 years ago

Jahfwkwi J

said over 5 years ago