What does it mean when you see a house listed for sale with tenants’ rights? If the home changes ownership, the lease must be honored.
We always love answering your questions, so this week, I wanted to address a question from a viewer who asked about homes that are advertised with tenants’ rights. They wanted to know what specifically the landlord owes the tenant and what the obligation is for the buyer.
So what does this mean? If you’re looking online, you’ll often see listings with tenants’ rights. When you see this, it means there is a tenant renting the house. Most of the time it’s under a lease, but occasionally it may be on a month-to-month term without an actual lease. Regardless, it means that there is a tenant currently in the home.
If you buy a house that has a tenant, the lease stays with the house. If their lease runs until December and you buy the home in September, you assume that lease. In this case, the tenant would start making their payments to you through the end of December. If you’re buying as an investor, it’s a great thing because you’re buying a house that is already providing income. If you’re buying the house with the intention to move into it, however, you have to wait until after December when the tenants’ lease ends unless you’re able to work out a mutual agreement for them to terminate their lease or leave early.
Simply put, tenants’ rights mean that you have to abide by the terms of the current lease when you buy a tenant-occupied home. If the tenant is on a month-to-month basis, Georgia law says that the landlord must give the tenant 60 days notice to vacate.
This is really important information to keep in mind if you’re buying an investment property or you’re just buying a house with a tenant in it. If you have any more questions about this topic or you have any questions at all about real estate, give me a call or send me an email. I look forward to hearing from you!