Do Landlords have a right to take possession in 60 days?

Question

I have a property i am considering purchasing to do a renovation but the property has a lease agreement until June of 2013. I had heard that a landlord can give 60 days notice at any point and can take back possession of a property. Is this correct?

Jon Holdman · Answer

Absolutely not true.  If you buy this property the lease stays in effect.  You would have to honor the remaining term of the lease.

Dale Osborn · Answer

When doing your due diligence read exactly what the lease states. Some leases have a clause that the lease can be terminated by either party with a certain number of days notice (30-60-90, etc). This will be the final determination as to what pertains for that specific property.

Account Closed · Answer

Putting the assignment and marketing fee aside, you previously wanted the deal for the price the wholesaler was asking, correct?  So is the thing that is now getting the way your knowledge of his profit?  The deal structure?  The structure could be changed.  Or, was it not really a good deal?

Account Closed · Answer

Jon Holdman According to this HUD doc for CO, you can raise the rents with 10 days notice.

"If a lease exists the rent is locked in for the term of the lease. If there is not a lease, a landlord can increase a tenant's rent by giving the following written notice: 10 days written notice before rent is due if rent is paid once a month; 3 days written notice before rent is due if rent is paid weekly or semimonthly. Mobile Home Parks are required to give 60 days’ written notice for rent increases on space when not protected by a lease for a longer period of time."

Account Closed · Answer

Jon Holdman I want to know more about this.  It's legal in CO to give a tenant notice to terminate/vacate with only 10 days notice?  Even when all other terms of the lease agreement are being met? You say it's in your lease, but I find it hard to believe there isn't some overriding tenant protection in your state law.

Is the 10 days just for termination, or can you raise rents or change other terms with only 10 days notice?

BTW, I have no issue with an asymmetrical agreement in favor of the landlord.  It's the landlord's job to write a lease with terms that protect their asset and it's the tenant's job to enter in a contract that they can abide by.  But there are so many state laws here that protect the tenant and would override certain terms, even if they were in a lease.

Account Closed · Answer

You may be confusing giving notice when a tenant is month-to-month, which can usually be terminated in 30-90 days, depending on the type of sale and state law.  If it's a term lease, then it can't be terminated just because the property is being sold.  I'd make getting a copy of the lease part of the due diligence, so you can see what terms are really in there.

You may be able to negotiate with the tenant to end their lease for a lump sum upon vacating.  You may be able to negotiate a better price with the seller based on the lease situation.

Account Closed · Answer

Kevin Barker, in addition to the lease itself, you might consider getting a Tenant Estoppel Certificate.  It's a summary of the lease terms signed by the tenant and landlord.  Sometimes tenant and landlord make side deals, reduced rent for mowing lawn, amount of security deposit, etc, that doesn't show on the lease.  Once tenant signs Estoppel, (s)he can't later claim differently.

Kevin Barker · Answer

I can get past the profit because it is still a deal, but i just do not like him hiding a fee from his seller. Also the HML stated they would not do the deal because everything should be on the HUD.

Kevin Barker · Answer

Thanks for all the advice!! This is what i love about BP, you ask a simple question and you get all this great feedback from seasoned investors. I would like to provide an update though. This was a property i was looking to purchase with a HML as a flip. Come to find out it was being sold by a wholesaler who had been working with the seller for over a year. When i ask for the assignment contract it proposed an assignment fee which would be on the HUD and a marketing fee outside of closing that i would pay. THis way for him the seller did not see his big profits. THe assignment fee was close to 3k and the marketing fee to be paid by me outside of closing was close to 13k!! Wow nice profits. Anyway when i sent over to HML he obviously stated they would not do a deal where all disbursements were not on HUD. I did not agree with wholesalers practices either so i decided to walk. NOt to mention the uncertainties of a tenant who had 8 months left on the lease

Eric Blackford · Answer

From another standpoint, you will have a tenant who is obligated to stay in the property for another 8 months and you want to throw them out? If the tenant is paying rent on time and if the renovations aren't necessary, why not wait until the tenants leave on their own? Just curious.

As for getting them out, agree that your best bet is to get a lawyers advice. There are way too many moving parts on this that have the chance to bite you in the backside.

Do Landlords have a right to take possession in 60 days?

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