Taking over an existing lease with addendums, RBP, BPP.

[Sean Gallagher]

To simplify the existing lease I thought about asking the tenant if they would be ok modifying the addendums to get rid of the resident benefit package and the building protection plan.  I will insure the property as a non-owner occupant.  Does anyone have an objection as to why I should continue with these services?  I would have to get with the property manager and mimic the exact plans they have set up in the lease, all of which were probably customized by the PM to get a few extra dollars.  Just seems like unnecessary work.  I'd rather simplify the lease and then raise then rent at lease renewal.  Thoughts?

[Laura Stayton]

It's impossible to answer this question with the information you provided...

[Michael Smythe]

@Sean Gallagher you should try to get the tenant to sign your lease anyways, which you should be more familiar with!

[Sean Gallagher]

Quote from @Laura Stayton:

It's impossible to answer this question with the information you provided...

How so?  Purchasing a home with an existing tenant / existing lease.  I have to honor the existing lease.  As for the addendums go I feel these two addendums just complicate things and thought of removing them entirely.  What information do you need in order to participate in this conversation.  

[Sean Gallagher]

Quote from @Michael Smythe:

@Sean Gallagher you should try to get the tenant to sign your lease anyways, which you should be more familiar with!

 Maybe there was a misunderstanding, I'm taking over a property with an existing tenant / existing lease.  I can't just get rid of the lease and have them sign mine.  

[Sean Gallagher]

Quote from @Sean Gallagher:

Quote from @Michael Smythe:

@Sean Gallagher you should try to get the tenant to sign your lease anyways, which you should be more familiar with!

 Maybe there was a misunderstanding, I'm taking over a property with an existing tenant / existing lease.  I can't just get rid of the lease and have them sign mine.  

 But I'm pretty sure I can modify addendums if agreed between both parties.

[Sean Gallagher]

I'm just going to write up an addendum to terminate these addendums.  Other than that I can't write a new lease until next yr.. thanks everyone.

[Nathan Gesner]

Quote from @Sean Gallagher:

If there is an existing lease, you must honor it. However, you can make changes as long as all parties agree.

If the tenant agrees to removing certain clauses, or starting with a new lease, then you can move forward. If they don't agree, then you'll have to wait until the current lease expires and then move them to your new lease.

Read the existing lease closely. My lease states that certain clauses go away if I'm no longer managing the property. For example, I have a tenant portal where they can pay rent or submit maintenance requests. I can't continue providing that service if the landlord takes over management.

[Michael Smythe]

@Sean Gallagher legally you are correct, but many tenants do NOT know this.

We take over properties all the time and close 80% of existing tenants sign a lease with us.

[Sean Gallagher]

Quote from @Michael Smythe:

@Sean Gallagher legally you are correct, but many tenants do NOT know this.

We take over properties all the time and close 80% of existing tenants sign a lease with us.

True!  Just show me where to sign... lol

[Chris Grenzig]

Quote from @Sean Gallagher:

To simplify the existing lease I thought about asking the tenant if they would be ok modifying the addendums to get rid of the resident benefit package and the building protection plan.  I will insure the property as a non-owner occupant.  Does anyone have an objection as to why I should continue with these services?  I would have to get with the property manager and mimic the exact plans they have set up in the lease, all of which were probably customized by the PM to get a few extra dollars.  Just seems like unnecessary work.  I'd rather simplify the lease and then raise then rent at lease renewal.  Thoughts?

 @Sean Gallagher check the RBP addendum there is usually a clause saying if the property sells that the RBP can be canceled and the services are no longer provided and the charges don't have to be paid.