If
you intend to purchase a home as a rental property, you need to take
several things into consideration. One thing to think about are your
responsibilities to a tenant currently livening in the home if you
buy from another landlord. Tenants have rights, and you need to
understand them before you move into your purchase. Here are some
things you need to think about.
Rights
of the Tenants
One
thing you should know is tenants' rights do not change just because
there is a change in the home's ownership. The lease the tenants have
currently has to remain in place even after you take ownership of the
home. Once you close, you may not increase the rent, change the
clauses, or have the tenant leave before their lease is up.
If
you want the tenants to leave, you have some options. One option is
to put the burden of removing the tenants on the current owner by
only closing with the contingency that the house will be vacant. If
the seller will not do this, you could try to renegotiate the terms
of the lease with the tenants or offer to buy them out of the lease.
Keep
in mind, however, the tenant does not have to agree to these terms as
long as the lease is valid. You also are at risk of a lawsuit if you
try to force tenants out prior to their lease expiration.
Obligations
of a Landlord
Once
you own a rental home, you have certain obligations as a landlord.
The most important job you have is to ensure the home is safe and
habitable for the tenants. At a minimum, you must make sure to keep
the floors, stairs and hallways in good condition. All structural
elements of the home, including the roof, are fully intact.
The
electrical and plumbing system should also be in good working order
and up to code. Homes need to have a heating and cooling source and
good ventilation. A rental home also must have clean running water
and a functional water heater to ensure the home has access to hot
water.
Landlords
must also deal with any infestations or rodent problems in the home
and be sure there is no risk for asbestos and lead paint poisoning.
Types
of Lease Changes
The
type of lease the tenant has in place when you take ownership will
depend on how or when you can make any changes. If the tenant has a
month-to-month tenancy, you only have to provide a one
month notice
to
the tenant to either vacate the property or make changes to the lease
for the months to come.
If
the lease is a fixed-term lease, in which a tenant has a set amount
of time before he or she has to leave or endure changes to the terms,
the tenant has the right to stay in the home under the current terms.
You
then may either opt to not renew the lease or change the lease to
your terms. The tenant then has the option to either leave the home
or sign a new lease with you agreeing to your terms.
Some
leases, however, may contain language which states that the seller of
the home has the right to change or terminate the lease if the home
is sold. If this happens, you as the new landlord will not have a
lease with the current tenants.
As
a new landlord, you must familiarize yourself with landlord and
tenant laws. Having an estate attorney on your side will help prevent
any legal slip-ups. If you need assistance as a new landlord, please
contact Donald
B Linsky & Associate
.
