Real Estate Investor · Saline, MI · Member since 2016 · 21 posts · 1 vote
Hi,
Newbie question. My current tenant's lease is up in a few months. My property management company emailed me and said they are folding and will cease to exist in 2 weeks (no big loss, they were a nightmare). I'm going to manage my tenant myself going forward. I asked them if they wanted to renew their lease for another year (they're good tenants) and they said yes. My question is: if I have them sign a new lease right now that will include the last couple months of their original term plus a year, is that ok? Or do I need to wait out the current lease which is up in a few months. I'd rather not do that since the lease was written by the soon to be defunct prop management company. If I write it up myself as of tomorrow, then their old lease would overlap with my new lease. Does signing a new lease legally terminate the old lease? thanks for your feedback.
Real Estate Broker · CA · Member since 2016 · 243 posts · 226 votes
8y
You can do whatever you both agree to. The standard would be to extend it one year out. And you can both sign that extension anytime. But since you want to rewrite the lease with your name just explain to the tenants what dates you want and create and sign that.
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
8y
I am not a lawyer, but a lease is a lease regardless of who wrote it. My lease renewal is a letter/document that changes the old dates to the new dates...eg. “Paragraph 2 line two is changed from May 1,2017 to May 1,2018. Paragraph 3 line one, Rent is changed from $1000 tp $1050 a month. Or something like that. You could change the pm to yourself and make any other changes. I include a stamped addressed envelope and ask the to return it by x date....or it will be assumed they do not agree to the terms and will be leaving and if leaving they still need to give written notice that they are leaving. Maybe text them to expect it in the mail. Google tar lease renewal to get a better idea of typical verbiage.
Real Estate Investor · Saline, MI · Member since 2016 · 21 posts · 1 vote
8y
Thanks, but I guess my real question is if I write a new lease, not an extension, that includes a couple of months that we’re covered under the old lease, is that ok? Since technically the old lease and new lease would have a couple of months overlap. If it isn’t ok, then I could do an addendum for those couple of months (making myself pm), then a brand new lease for the new year.
Sterman, MI · Member since 2017 · 378 posts · 306 votes
8y
You can sign a new lease starting now/taking affect now if you don't change any terms unless the tenant agrees to the new terms. You could write it for 16-18 months or however long you want it. If you want new terms you have to let the present lease expire. You can sign a new lease today if you date it to start the day after the present lease expires.
Property Manager · Davenport, IA · Member since 2014 · 19 posts · 8 votes
8y
I don't know about overlapping leases. if it were me I'd write an addendum to modify the original lease through the original term changing the landlord name/address etc and write a second lease for the new term. I just wanted to add that some states render leases longer than one year unenforceable and some only allow them if they are notarized. I would check into that as well.
Investor · Jacksonville, FL · Member since 2015 · 76 posts · 22 votes
8y
I would write a new lease with the new terms that you want (probably different than old managers terms) and make the start date the day the current lease expires. that's what we do with our current properties. if you want to keep all the same terms than the suggestion about amending the current lease and extending the lease is probably what I would do.
Rental Property Investor · Kansas City, MO · Member since 2014 · 16 posts · 1 vote
8y
I inherited a tenant with an expiring lease that automatically rolled to month-to-month. I did not like the existing lease document so when I presented the Tenant with my lease I also had her sign a document stating that I elected to terminate the original lease document, referencing the date and signing parties.
I am no lawyer but I felt comfortable with that strategy