Architect · Union, NJ · Member since 2017 · 17 posts · 8 votes
Hello hello!
I think this is a pretty straight forward question:
I’m looking to buy a condo in a managed building in New Jersey, which is currently occupied by a tenant whose lease expires in April.
-Must they remain in the property until their lease expires? -Can I pay them to move out? If so, what determines that cost? -If they stay in the apartment in April and pay rent to me, technically they are breaking their lease- would I owe the current landlord any fees associated with breaking the lease?
"I think this is a pretty straight forward question:"
Simple straightforward answer is that if you are intending to get into this business you must first study and learn all your state specific landlord tenant regulations.
It is OK to come on a forum for clarification after you study your codes but it is never advisable to ask for advice without first learning the laws Forum advice is not entirely reliable due to the fact that posts could be from landlords from any state in the country or outside the US and in many cases from individuals that have also never bothered to learn their codes.
Learn the codes in your state then ask for clarification if needed.
They can remain in the unit until the lease expires provided they follow the terms of the lease. You can offer them money to get them out of their lease, the cost depends on what you are willing to offer and what they are willing to accept. If they pay rent to you they are not breaking their lease. All the terms of the lease transfer to the new owner.
If you purchase the condo they would need to be informed that there is a new owner and future rent payments shall be paid to the new LL/owner...
As Anthony already stated the lease agreement supersedes the sale as far as tenant being allowed to live out the remaining time of the lease.. As you said you can try to entice the tenant to move by offering them cash. How much is anyone's guess ... One month, 2 months 3 months rent? It all depends how motivated the tenant is on moving.. Perhaps in a perfect world they are looking to move and would be happy to be released from their lease.
Are you dead against allowing them to live there until lease ends naturally and being a landlord for that time period? I assume you are looking to owner occupy the condo?
-Must they remain in the property until their lease expires? Yes, unless you let them out of the lease, which you are free to do.
-Can I pay them to move out? If so, what determines that cost? Sure. Whatever they are willing to accept. If you don't offer them an amount they want to take, they have the legal right to stay until their lease expires. -If they stay in the apartment in April and pay rent to me, technically they are breaking their lease- would I owe the current landlord any fees associated with breaking the lease? Why would they be breaking their lease if they stay in the apartment? The other landlord doesn't own it anymore and has no rights. He should be assigning the lease to you at closing.
You'll also want to keep in mind that good old NJ has restrictive anti-eviction laws. You can't end their tenancy just because their lease expires, only for good cause (otherwise it automatically goes month-to-month after expiration). So it limits your options there and just wanted to mention it so you can be aware. So if they don't want to leave at the end of the lease it can be a pain if you actually want them out for your own reasons.
"I think this is a pretty straight forward question:"
Simple straightforward answer is that if you are intending to get into this business you must first study and learn all your state specific landlord tenant regulations.
It is OK to come on a forum for clarification after you study your codes but it is never advisable to ask for advice without first learning the laws Forum advice is not entirely reliable due to the fact that posts could be from landlords from any state in the country or outside the US and in many cases from individuals that have also never bothered to learn their codes.
Learn the codes in your state then ask for clarification if needed.