LEASE CHANGES (to include rent raises) BEFORE CLOSING!

[Anna M.]

Tenant’s lease ends 12/31/17. We close 1/2/18. Tenants want to stay. We prefer they use our lease (less vague than existing belonging to property management company running the show currently). So Planning on inheriting these tenants though not always preferred I.e. inheriting tenants, but makes sense at this point. We are also planning to self-manage so have no intention of keeping existing PM company.Can we provide tenants with our lease for review and request now, “before closing” that tenants sign our lease to go into immediate effect after closing, that is if they plan on staying? We are Including a clause that explains that though signed now (on/or before 12/1/17), lease only goes into effect closing. 👀.

[Mindy Jensen]

@Anna M. , until you own the property, you can't have them sign a lease.

Make an amendment to the contract that current owner has them sign a lease that ends at midnight, day after closing so you can put them on your own lease. Make sure the seller transfers the security deposit to you at closing. 

Explain all this to the tenant, share with them the lease you plan on having them sign, and plan to meet somewhere after closing so they can sign your lease.

Note this is not legal advice.