Lease Agreement Question - New Property Purchase

[Craig S.]

Hello, I am purchasing some apartment units with existing tenants and leases in place. When I acquire a new property, I have the seller give me a lease assignment agreement, assigning the leases legally over to me. This not only ensures that I have legal rights to collect the rents, but it also ensures that should the tenant violate the terms, I can enforce the terms of the lease since I now own it. When the "old" lease expires and if I like the tenant, I will then have them sign MY lease agreement instead of using the existing one that was on the property when I bought it.

My question however, is it legally possible or recommended to have the tenants sign MY lease right away, assuming they are willing to do so? What do you guys do? Obviously, I prefer them to switch over to MY lease as soon as possible because I am most familiar with it and it is very detailed.

An attorney had mentioned to me in the past that I may need to extend the term of the lease beyond the date it is set to expire if I do it this way, since to be considered a contract both parties need consideration and to give up something of value to the other party. I would think just regardless whether I reduce the term (like change from annual to month-to-month) or increasing the term wouldn't really matter.

Do you any of you have a better answer on this, whether it is legally acceptable to have the tenant sign a new lease as soon as I purchase the property, assuming they are willing to do so, and can I reduce the term (month-to-month), again if they are willing to do so?