Landlord Question and Answer Forum

What is the protocol if you are contemplating on selling but haven't decided yet to actually put it up for sale? I am preparing a new one year lease document effective 6/1 and need some advise about what addendum I should put in it.

Let the present lease continue as a month-to-month. If you decide not to sell, you can always change it to a 1 yr lease.

Posted by Bob R, CA on Saturday, March 24, 2012

Thanks for your reply. The existing tenants are moving out and I agreed to give the new tenants a 1 year lease, but I would like to keep the option open to sell. Do think that I can put in the addendum that if the house gets sold, the new owner will have the option of honoring the lease or give the tenants say a 60 day notice that he no longer wants to rent it out?

Posted by Wayne C, CT on Saturday, March 24, 2012

If I was thinking about selling, I would do the following: 1st - create an addendum stating that should you decide to sell the property, you would like the tenants co-operation by keeping the place clean at all time and allow it to be shown when contacted for showing. 2nd - rent is paid on time as per agreement. 3rd - all terms of the agreent are met. In return, I (landlord) would make sure that tenants receive at least 60 days notice to move (they could move sooner) and give them 1 or 2 months rent rebate. Rebate would be given within 2 weeks after closing and all lease terms and above agreement have been met. This is an incentive to keep tenants and rent coming in while property is being sold. There is no way to determine how long it would be on the market. So the question is...how long can I support the property without receiving rent. Now, if the buyer want to keep tenant, consider another form of "thank you" for their co-operation. Maybe 2 months rent if they have to move and 1 month if they remain. Also, remember that the security deposit you collected will have to be given to the buyer.

Posted by Bob R, CA on Saturday, March 24, 2012