Buying a home is a big undertaking. As you navigate things like a buy-sell agreement, your budget and fair market value, and an inspection, another important consideration is what to do if you’re thinking of buying a home with tenants in Lynn. Indeed, buying a home with tenants who are already living within the home can complicate things – tenants have important rights, and whether or not you decide to maintain the tenants, you’ll have certain obligations as the property owner. At the law office of Deborah Gold-Alexander, Attorney at Law, our Lynn real estate attorney can assist you in buying a home with tenants. In the meantime, here’s a brief overview of what you should know–
The Rights of Tenants
The first important thing that you should know about buying a home with tenants is that purchasing the home/a change in ownership of a property does not automatically change the terms of the tenants’ lease. In other words, just because you bought the home does not mean that the tenants can no longer live there. Instead, if the lease is in place before you take ownership, then the lease will remain in effect until its expiration date. This means you cannot legally raise the rent, kick the tenants out, etc. until the lease expires.
However, that doesn’t mean you’re completely out of options. You can negotiate your purchase agreement on the property to include a clause that you won’t close on the property until the tenants have vacated, putting pressure on the existing landlord to break the terms of the lease or buy out the tenants. Similarly, you could also do this yourself after taking ownership. Note, however, that if you don’t do things by the book, you could face legal consequences. A prospective purchaser/landlord should be advised that an eviction proceeding can be an expensive and protracted proceeding especially if the tenant pays less than fair market value rent, has been a long term tenant, is over the age of 60 and for many other reasons.
Maintaining Tenants After Closing
Some buyers have no problem continuing to lease to existing tenants after they close on a property. In fact, you may be purchasing the property primarily to use as a rental property. If this is the case, it’s important that you understand your duties as a landlord. These duties include maintaining the premises in a safe condition, ensuring structural elements are intact, managing any environmental toxins, upholding the terms of a rental contract, ensuring that tenants always have access to hot water, heat, and running water, and more. Being a landlord can be a very demanding job, and one that could have legal consequences if not performed correctly.
nants and make sure you have information concerning their credit history, rent payment record, employment status, exactly who is living within the premises, whether or not there are any problems in the apartment. If you do retain the tenants, it is strongly recommended that you obtain a certificate of occupancy from the city/town confirming that the apartment is fit for the tenants and in compliance with the law.
Call Our Lynn Real Estate Lawyer Today
If you are buying a home with tenants in Lynn, it’s a smart idea to work with an experienced real estate lawyer who also knows the ins and outs of landlord-tenant laws. At the office of Deborah Gold-Alexander, Attorney at Law, you’ll find a lawyer with over 30 years’ experience and a strong commitment to her clients. To learn more, please request a consultation by calling our office directly or sending a message with more information.