Results 1 to 2 of 2

Thread: Notice to Tenant for Selling Rental House

  1. #1
    Junior Member
    Join Date
    Jul 2004
    Posts
    1

    Default Notice to Tenant for Selling Rental House

    I have a one-year lease for my rental house (in CA) that will expire
    at the end of August, and I want to put the house on the market for
    sale. The tenants have been good, but with interest rates going up
    and the local real estate market starting to cool down, I think it may
    be time to sell. I would like to let them stay there until the house
    sells instead of making them move out at the end of August if they
    want to, since they have said in the past that they want to stay as
    long as possible. What is the right way to give them notice? If I
    give them notice that their lease is not being renewed, they would
    have to move at the end of August. If I want to let them stay until
    the house sells, the tenancy will have to turn into a month-to-month
    rental, which it does by default after lease expiration anyway, so it
    seems there is no point in giving them a notice now. Under CA law,
    once they have lived at the house for over 1 year, I have to give them
    60 days notice to terminate the tenancy. Should I tell them that I
    intend to put the house on the market in September and not actually
    give them notice to move until I have a sales contract? That would
    mean at least a 60 day escrow to give them time to move out.

    If I do decide to just tell them their lease isn't being renewed, do I
    have to give 30 days notice?

    Thanks for your help!

    Mary

  2. #2
    Junior Member
    Join Date
    Jun 2004
    Posts
    17

    Default Notice to Tenant for Selling Rental House

    In article <2356fb0b.0407082243.6338d5ee@posting.google.com >, ML says...
    I have a one-year lease for my rental house (in CA) that will expireat the end of August, and I want to put the house on the market forsale. The tenants have been good, but with interest rates going upand the local real estate market starting to cool down, I think it maybe time to sell. I would like to let them stay there until the housesells instead of making them move out at the end of August if theywant to, since they have said in the past that they want to stay aslong as possible. What is the right way to give them notice? If Igive them notice that their lease is not being renewed, they wouldhave to move at the end of August. If I want to let them stay untilthe house sells, the tenancy will have to turn into a month-to-monthrental, which it does by default after lease expiration anyway, so itseems there is no point in giving them a notice now. Under CA law,once they have lived at the house for over 1 year, I have to give them60 days notice to terminate the tenancy. Should I tell them that Iintend to put the house on the market in September and not actuallygive them notice to move until I have a sales contract? That wouldmean at least a 60 day escrow to give them time to move out.If I do decide to just tell them their lease isn't being renewed, do Ihave to give 30 days notice?Thanks for your help!Mary
    Your question is more one of practicality rather than law as you seem to have a
    pretty good grasp of the law on this point. (I am assuming that you have
    accurately stated applicable law regarding notice.)

    Basically, your question is how to keep collecting rent until escrow closes
    while not impeding a sale due to the fact the house is encumbered by a lease.

    You could put the house on the market and give the tenant his 60-day notice at
    the same time. I don't know about CA, but closing in my area takes about 30
    days from acceptance of an offer. If it takes a month to find a buyer and a
    month to close, then closing would occur about the time the tenant moves out.
    Two big drawbacks to this plan is that the house may not sell in 30 days and you
    will have to rely on the tenant to cooperate in the sale by keeping the house
    presentable.

    But if I was in your shoes, I would give the tenant his notice ASAP. Once he is
    out, I would clean the house and make any cosmetic repairs that the house needs
    before putting it on the market. A tenant has little incentive to assist you in
    selling the house he occupies and his presence in the house is going to do
    nothing to encourage a sale. I myself have looked at homes that were occupied
    by tenants and never wanted to take a second look at any of them. A clean
    vacant house is an easier sell than one that is cluttered with a tenant's
    possessions. In the short term you will lose a little bit of rent but you
    should make it back on a faster sale at a better price.


Similar Threads

  1. GROSS INCOME
    By Dale Eastman in forum Federal and State Tax Law
    Replies: 166
    Last Post: 08-02-2005, 02:27 PM
  2. New 861 loser - Goodin
    By Richard Macdonald in forum Federal and State Tax Law
    Replies: 0
    Last Post: 07-06-2005, 07:07 AM
  3. Arizona Constructive Discharge Notice Labor Law Poster
    By laborlaw in forum Arizona Labor Laws
    Replies: 0
    Last Post: 05-23-2005, 01:37 PM
  4. What can a landlord do about tenant property?
    By landy in forum Landlord & Tenant Law
    Replies: 1
    Last Post: 04-15-2005, 10:59 PM
  5. 60 Day Notice to Move Out
    By Mr. Freeze in forum Small Claim Court
    Replies: 8
    Last Post: 05-21-2004, 06:23 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •