A rental property is a great source of income for its owner. That gives the landlord the freedom to sell the property in case there are financial emergencies. Since this is the case, though, one must remember that there are occupants inside, and that means the approach of the landlord must be different as compared to when no one is leasing the property. For occupants, you must also be familiar with tenant’s rights when landlord sells property.
Get a Notice to Vacate the Property
When a landlord sells a property, they must inform their tenants to vacate it once the lease term has expired. This is in order to avoid tenant complaints and issues later. Most, if not all, states require landlords to notify their tenants at least between 30 and 60 days before they leave the place. Landlords must check on local laws on how to terminate rental agreements.
Notice on House Viewing
Your landlord may get excited about being able to sell their property to a new owner. When this is the case, they must not forget to notify you in case they are scheduling a house viewing later. As tenants, you must be notified at least a day or two before the actual visit happens. This is for you to have time to prepare the place for the viewers. You can come to an agreement with the landlord so that no one will be inconvenienced in the process.
Receive Lease Termination Payout
Also known as “cash for keys”, a lease termination payout is required if you have agreed to vacate the property before your lease term ends. You must be compensated with the amount that covers the remaining time of your lease, which you can use while looking for another property to rent. This is recommended when the lease does not contain any early termination clause.
Dishonor the Lease
As tenants, you also have the right to dishonor the lease. This happens when you have not been informed beforehand of the landlord’s plan to sell the property. While this is the case, be the responsible tenant that you are, such that you must not do anything to destroy the property that you once enjoyed.
Negotiate a Relocation Fee
You can demand a relocation fee if the property you are renting is put on sale. You can be paid according to where you will be relocated in the process. Some cities require full payment of relocation fees on the part of the landlord, while others allow half of the total cost. This will then make the landlord think of waiting for the lease contract to end before selling the property.
Receive Security Deposit
Remember you paid a security deposit when you signed the lease agreement? That fee is refundable once you are instructed to vacate the house. Your landlord should refund this when the lease term ends. In case your landlord allows you to stay in the property even under the new ownership of someone who offers rent your property services or any other owner for that matter, you have the right to know that and arrange for a refund later.
Owning a rental property can be profitable, however, navigating the complexities of landlord-tenant relations requires a unique approach, especially when selling a leased property. To ensure a smooth and ethical transaction, occupants should also prioritize familiarizing themselves with tenants’ rights in such situations.