Month to Month Agreements
Los Angeles Property Management companies say if your tenant is renting on a month to month basis, you need to give your tenant proper notice. This would involve mailing or delivering a letter to your tenant 30 days before you’d like them out of the property, normally in respective to the due date for rent. Los Angeles Property Management companies note that the required notice period can vary from state to state, be sure to look the state’s policy.
A Los Angeles Property Management company doesn’t need a reason to terminate a month to month agreement, that’s why it is called a no cause termination. Los Angeles Property Management companies consider this a benefit on having a month to month agreement. There’s no need to tell the tenant why they need to vacate, unless the Los Angeles Property Manager wants to.
Example Of What To Do:
- Must send a letter with the date on it letting your tenant know that their tenancy will terminate in X amount of days from the date of the notice or next rent due date (again depending on your state).
- The Los Angeles Property Manager must also inform the tenant to remove all possessions and return the key(s) to the front office on or before the last day noted in the invoice.
- If for whatever reason they don’t move out, the eviction process can begin immediately.
Fixed Term Leases
Los Angeles Property Management companies say that fixed term leases require more of a delicate touch and don’t typically terminate because a property changed owners.
Five Options On Handling A Fixed Term Lease
1. Wait Until The Lease Expired
If you have a tenant and they’re in good standing with the lease, the best method would be to wait to sell the property when the lease is up and the tenant moves out.
Now, if a tenant violated the lease terms, termination of the lease would move along very quickly with the proper notice of course. Valid reasons for a lease termination include:
- Not paying rent
- Involved in illegal activities in the unit
- Serious property damage
- Violation of a no pet clause
- Subleasing is prohibited
- Being a bothersome tenant to others
- Submitting false information on the rental application
2. Selling The Property Within An Active Lease
This option can limit a prospect because you would have to sell to someone who understands that a tenant is living in the property, not knowing if the Property Manager would be ok with that. You are limiting yourself to investors, basically.
It’s very important that the new owner honors the tenant’s lease agreement and lets the tenant live in the property until the end of the lease.
In about every state, the lease and security deposit must be transferred with the property, and also when a new owner steps in as the new landlord. A fixed term lease cannot be terminated when a property is sold.
3. Paying Off The Tenant
If the property owner wants to sell and a tenant still has a few months left on the lease, Los Angeles Property Management companies can try to negotiate a settlement to get the tenant out early. This is called cash for keys.
Los Angeles Property Management recommend to see what properties can be compared to yours in the area. If rent happens to be more than what you’ve been charging, offer to pay the difference between what the tenant will likely have to pay and what they have been paying, plus times the amount of months that are left on the lease.
The bottom line, when forced out of a lease early by Los Angeles Property Management companies, it depends on how much you want your tenant out early, and also how much can the Los Angeles Property Management company can afford to give the tenant.
4. Selling The Property To A New Tenant
Los Angeles Property Management companies may sometimes offer to sell the property to a tenant. Allowing them to get financing on their own, or they’ll offer a seller financing arrangement, this is a type of transaction where the Los Angeles Property Management company is the lender and allows the tenant to make payments to buy the property.
Seller financing is extremely captivating of an offer to long term tenants that are in good standing.
Also another thing to keep in mind is that you normally need to own the property free and clear and/or get approval from a mortgage lender to conduct a seller financing deal.
5. Early Termination Clause
There has been cases where tenants and even those in good standing, don’t get to live out the entire lease agreement. A few leases have an early termination clause that handles a variety of situations.
Los Angeles Property Management companies say these clauses normally state that the lease terminates in 30, 60 or 90 days. An example would be, after closing on the sale of the property. The cause could be anything, as long as it’s reasonable, and the two parties agree to everything in the lease.
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