Offering a tenant an incentive to move out.

Offering a tenant an incentive to move out.

Triangle NC · Member since 2016 · 136 posts · 11 votes

I have heard of folks offering an incentive to have a tenant to move out. I will be selling my property in a couple months and my tenant is on a month to month lease. A landlord can't ask a tenant to move out just because they are selling but I was wondering if I could offer an incentive that may motivate a tenant to move out. I would prefer to sell the property without a tenant so that my buyer pool is larger. Also, the house is in a tear down area with duplexes going up left and right so I'm assuming a builder will want to buy it. My questions are as follows:

1) Is it legal to offer a tenant an incentive to move out?

2) How does this typically work? Do you simply email the tenant and say Ihave a proposition. If you move out by x date I will offer you x dollars...OR do you say that you will offer them x dollars if they move out by x date but you must let me know 4 weeks prior in writing if you have Decided to move out by x date?

3) For those of you that have done this, how did your tenants respond? Did they try to get more out of you? Once they knew that you would benefit from their moving out did they try to up the incentive?

4) How did you decide how much to offer them as an incentive?

Thank you for your input! 

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  • Investor · NW Indiana · Member since 2012 · 833 posts · 197 votes
    9y

    @Chris L. Why would you offer an incentive when it is a month to month.  Usually, you just need to give them a 30 day notice, more if you want to be nice, that you are not going to renew.  Are your landlord laws different, is your lease set up differently?

  • Ronan M.Pro Member
    Rental Property Investor · Chicago, IL · Member since 2015 · 352 posts · 281 votes
    9y

    I'm with Carolina. 

    Just give them sufficient notice (in writing) that you are terminating the lease.  And give them nada. 

  • Triangle NC · Member since 2016 · 136 posts · 11 votes
    9y
    Yes,NJ laws are VERY different than most states. You can not give 30 days notice without "Due Cause"-even with a month to month lease. It seems many folks are not aware of this. 

    Originally posted by @Carolina E.:

    @Chris L. Why would you offer an incentive when it is a month to month.  Usually, you just need to give them a 30 day notice, more if you want to be nice, that you are not going to renew.  Are your landlord laws different, is your lease set up differently?

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y

    "Due cause"....renovations/fix up for selling of the property?

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y

    After a quick Google search.....the landlord Can make the tenant move out if the owner is selling to an Owner Occupant, And the purchase contract calls for the property to be vacant at closing, with proper notice I assume.  Don't know if this applies to you.  NJ is obviously a tenant friendly state!

  • Newark, NJ · Member since 2017 · 26 posts · 13 votes
    9y

    HI Mary, 

    In NJ, the advance notice to be given by either landlord or tenant who wants to end the relationship varies according to the type of leasehold:

    Periodic estates have varying requirements:

    An estate from year to year requires three months' notice;

    A month-to-month tenancy requires one month's notice; and

    A week-to-week tenancy requires one week's notice.

    For your particular situation, I don't think you need to offer them incentive to move out unless you want to.

    Best regards,

    Lee

  • Weehawken, NJ · Member since 2015 · 31 posts · 14 votes
    9y

    How many families is your building? http://www.nj.gov/dca/divisions/codes/publications...

    "The landlord may file for eviction, if the owner of a building with three residential units or less seeks to personally occupy a unit, or has contracted to sell the residential unit to a buyer who wishes to personally occupy it and the contract for sale calls for the unit to be vacant at the time of closing. A Notice to Quit must be served on the Tenant at least two months prior to filing suit for eviction. No legal action may be taken until the lease expires."

    So if it is three or less you can certainly get it vacant at closing.  personally I would tell them that rather then supries him with notice to move out whenever it goes in to contract it might make more sense have him look for a new place now and then he can move out on his schedule rather then need to hussle to find a place when you go under contract

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