Lease contract question

[Joe Xie]

I am buying a rental property at Bay Area with rental control has a tenant who is on month to month lease with selling landlord. I am planing continue with the term's the selling landlord. This is my first time to get a property with tenant, not to mention in rental control area so I come here for advice on following questions: 1. Do I need write a new lease or just a rent estoppel certificate refer to the old lease the tenant with the seller? 2. If I need a new lease, my agent suggested I refer to the old lease. But how do I refer to the old lease (I plan to honor all old lease teams ) in new lease? I plan to use exactly same write up as old lease, but then where and how I can refer the old lease? 3. Escrow will be close early next month, should I put 7/1 as start of new lease or 1/8? Or the date of the escrow close?

[Amit M.]

@Joe Xie let me make this simple for you: as the new owner, you are basically stepping into the shoes of the old owner when it comes to dealing with the tenant. Sure, you can ask the tenant to sign anything, but they do not have to. Their old lease is the default, and in CA leases automatically go month to month after they expire. 

First, you should have gotten a copy of the tenants lease in the disclosures. Read it over carefully, because you are bound to those terms. If you did not get a lease copy, did the tenant at least fill out the estoppel?

Basically, if you have the existing lease, and it is basically a decent lease, I'd just stay with it. You can see if the allowable rent increases were given, etc.

If the old lease is substandard, or you only have the estoppel, I'd talk nicely with the tenant, once you take possession, and see if they are open to signing a new lease, so you guys have all your terms straight. But remember, they don't have to agree to do this. 

You need to be careful with rent control, as some tenants, especially if their rent is low, will assume you're trying to take advantage of them. And, if this property is in San Francisco and the rent is low, you'll need a lot of luck getting a tenant to sign a new lease!