Buying a duplex and terminating a lease agreement

[Jason Gilbert]

In Utah, if I buy a duplex and there is a recently signed lease agreement with the previous owners, but the rent is about $500 lower than it should be, do I have the right to terminate that lease agreement since the agreement is not between myself and the tenant?

Thank you for your help!

[Mike Gorius]

No, you do not have the right to terminate the lease agreement since the agreement is not between yourself and the tenant. The tenant has the right to the lease they signed, regardless of what it says, until the end date. After that, they will either leave, you can have them sign a new lease (with your terms), or have them go month-to-month. Once they are month-to-month you can raise rents, give them 60-days notice to vacate, etc.

You could offer them cash for keys when you take over the lease. If you are unfamiliar with what this is, it is when you basically buy them out of their lease. "I'll give you X dollars to sign this contract agreeing to move out early by Y date."

Do you have a property in mind? How much longer is left on the lease? Utah's appreciation is nuts right now. Depending on how the numbers look, it may be worth it to eat the $500 loss until the lease is over if the property is appreciating more than that each month.