So you’re living in a rental, and the current property owner sells it. The good news is that, more often than not, your current lease is still valid. If the new property owner chooses to keep renting the property, they become your new landlord, and typically, your situation stays the same until your lease is
The post What to do When a New Landlord Takes Over Your Rental Property appeared first on The Zumper Blog.
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So you’re living in a rental, and the current property owner sells it. The good news is that, more often than not, your current lease is still valid. If the new property owner chooses to keep renting the property, they become your new landlord, and typically, your situation stays the same until your lease is up. However, there are a few situations that could impact your lease and your ability to keep renting. Here’s everything you need to know about your rental changing owners and what you can do to secure your living situation.
Steps to take when a new landlord takes over your property
1. Review your lease
In most cases, your lease stays intact when a property changes owners. However, there are rare cases where a lease agreement will explicitly state that your lease terminates, and you must enter a new rental agreement with the new owner. Since this clause isn’t common, the new property owner is likely to be obligated to fulfill the terms of your in-progress lease.
When you hear that the property owner is selling (or has already sold) the property, the first thing you should do is check your lease for any language suggesting your lease will terminate when the new owner officially takes possession. Consider also reaching out to the new property manager before the property is sold to go over the agreement and make sure you both understand the situation.
You should also confirm with the new owner that your rent will stay the same as it is listed in the lease, as the new owner is not allowed to increase the rent while the current lease is in progress.
2. Confirm where you should send your rent payments
Now that the property has a new owner, you’re likely not going to be paying the same person or company. You may go from paying your property manager by check to paying the new property owner using an online rent payment portal. Or, you may be writing checks to a property management company instead of a single person.
Before the new property owner takes possession, confirm with the original owner that they’ve received any recent payments you made. Then, reach out to the new owner to learn who you should be paying and by what method.
3. Check that your security deposit transfers
Just as the lease transfers from one owner to another, so does your security deposit. It’s not likely that the new owner will return the deposit to you. But you should reach out to the new owner to find out who is holding your security deposit. The new owner may need to track down your security deposit, but they shouldn’t ask for a new one. Be sure to keep a record of paying your security deposit to the original owner, and consider asking them for a copy of the receipt of your security deposit payment just in case.
4. Make sure you get proper notice if the property is being converted or demolished
A new owner may not have plans to continue renting the property. For example, if you’re renting a house and the new owner wants to live in it as their primary residence, you’ll be required to move out. Or, the new owner may be converting a building into for-sale condos or even tearing it down. However, in all of these cases, you must receive a proper eviction notice with a move-out time frame that abides by the state’s or city’s eviction laws.
If you do not receive a move-out notice, be sure to reach out to the new owner to discuss their plans for the property. Consider also researching what your state or local laws are regarding eviction notice timelines. For example, some areas may require property owners to provide 90- or 120-day notices, depending on why the new owner asks you to leave during your lease.
Note that if your lease ends, the new landlord does not have to let you stay on a month-to-month basis or renew your lease. However, if they are not planning to renew, they must provide you with at least a 30-day notice, depending on the terms of your lease.
5. Ask the new property owner if they’re planning to renew your lease (if it’s ending soon)
If you’re coming to the end of your lease, consider sitting down with the new owner to ask them whether they’re open to renewing your lease, how much they plan to raise the rent, and if they’d be willing to let you go month-to-month if you’d prefer that. Be sure to speak with them before you decide and write a letter of non-renewal to inform them of your choice.
6. Get all promises for upgrades to the property in the new lease
Maybe you’re coming to the end of your lease, and the new owner is raising the rent. They may have big plans to improve and upgrade the property and increase the rent because of that. If those things convince you to renew your lease, have the owner include in your lease what those upgrades are and when they plan to complete them. That way, you have these promises in writing.
When you get a new property manager from the same company
Say you’re renting with a property management company and your complex or unit gets a new property manager. That means your lease, security deposit, and many other factors of your living situation stay the same. However, you might see changes (hopefully positive) to some of the following elements of your property:
Community-building events and activitiesSecurity measures and featuresProperty amenitiesPayment methods (from check to online payments)Maintenance request handling and communication timeProperty landscaping and maintenance
Knowing this process’s impact (or lack of impact) can make you feel more confident and secure during the transition. If you have an existing lease and the new owner is asking you to sign a new one with them, consider reaching out to an attorney or tenants’ rights organization to get guidance on how to handle this situation. And if you encounter any questions or concerns during the transition to a new owner, these professionals can help.
The post What to do When a New Landlord Takes Over Your Rental Property appeared first on The Zumper Blog.
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