Expert: Hans Weber, Licensed Broker Associate - 4/6/2009

Question
My parents recently passed the title of our home to me, they have since moved
out. I
don't intend on moving out any time soon but I'm curious if I were to sell this
home,
we have a tenant. His parents lived under the original home owner and when my
parents bought the house they liked the extra income. The tenants son has now
been
renting the second floor of the home for twenty+ years. For the original
tenant and
this one, my parents had contracts. However over time they got rid of the
contract.
Now he is a sitting tenant. I would like to renovate the whole house, including
the
second floor and convert this into a one family home. I would of course give
three to
six months notice at the very least of requiring him to vacate. I would also be
happy
to only have him pay for his utilities in good faith for at least three months.
What
legalities do I need to know about before doing any of this, and what actions
could he
take to stop the process? Thank you in advance, Ari

Answer
Hello Ari,

Thank you for your question.

If there were a lease it would be the guiding instrument.  I don't know if your local custom assumes the lease terms to remain the same and continue after the expiration date.  How have you handled rent increases, if any?

Your proposed process to give notice and trade free rent in exchange for a peaceful move out sounds quite fair.  That would be your best approach to create a peaceful transition.

However the rent you are charging may be below market for the area and a new home might be more expensive for the tenant and they may resist moving.  That might precipitate trouble.

Check on local rents and availability.

If your plan is to go ahead, make your offer in person.  Explain your plans and a reasonable person should agree with your generous offer.

You may want to check with a local lawyer as a backup in case the tenant does not cooperate.

Good luck,

Hans