Not keeping old tenant after buying

[Sara Bell]

Hi all,

Still looking for some advice as far as tenants go that come with a property. I'll be closing on a fully occupied duplex this coming Monday. Neither tenant is currently in a lease. I will only be keeping one tenant, as I plan to house hack. I need to get paperwork ready to give to the tenant I am not keeping. Just looking for advice if anyone has been in this situation or if anyone has a draft of a non-renewal type document. Everything is in place for the tenant that is staying, just trying to figure out the best way to handle the other tenant. Thanks in advance!

[Greg Weik]

Hi Sara, terminating a month-to-month tenancy can vary by state and by the length of the original lease (it's not always as simple as a 30-day notice, but usually that's all that's required.) 

Do you have a copy of the tenant's lease that you are seeking to terminate?  If there previously was a lease in place and that lease defaulted to m2m, the original lease terms will apply.  The tenant's performance, post lease expiration (rent payments, utility payments, etc.) are constructive evidence of this from a legal perspective.  

There is no formal language typically required on notice to terminate a month-to-month lease (which is any lease that has expired or was not in writing), and you are not required to tell the tenant why you are terminating their lease, either (I recommend you do not volunteer this.)  Reference the date of posting, the tenant's name (and language that addresses "all other occupants"), the property address and certify that the notice has been hand-delivered by you or posted in the tenant's absence.  Take a picture of the posting if not handed to the tenant.  If you have the tenant's cell number, text with them so you have a written trail also (this can come up in court and in my experience, judges are largely accepting of any written communication to paint the context of a situation.) 

You'll need to do a quick search of your state's laws regarding month-to-month leases and review the lease in place, if there is one.  Most likely, you'll need to post or deliver (or possibly email, if there's a lease that allows for it) the notice of termination, with a required vacancy date of 12/31/2020.  

If things go sideways, and the tenant won't leave, be prepared to hire a PM company.