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Tenant Lease

David9205

ergoCentric Dave
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I am in the process of purchasing a condo with an existing tenant who would like to stay (I would also like for them to stay). Can I get my future tenants to sign a future dated lease now which would be date Nov 1, 2016 - Oct 30, 2017 before I'm legally the owner and take possession and if something happened would it be legally enforceable?
 

darkness05

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I just got into something similar to this a few months ago. We did the same thing ... had them sign a new lease (before we owned it) starting on the date that we took possession. All was good on our end (and theirs) except for one key step - the sellers did not have the current tenants sign a mutual release of tenancy on the original lease. That really came back to bite me in the ass. About 3 weeks before we took possession, the tenant called me and said they were only going to pay what was on the first lease since it was never voided and if we wanted to raise rent we could only do the 3% a year. They were paying $1100 a month with the original lease and getting bumped to $1500 with our lease. The first day that the higher rent was due we gave them a 10 day eviction notice for unpaid rent, which they disputed. We had a hearing date scheduled for the end of October but it never got that far. I met with them and after emotions had subsided, they realized that what they were doing was wrong and just paid the full amount a few days ago.

I spoke with multiple agents at the RTB and about 50% of them said we would win in court and the other 50% said we wouldn't.

Ultimately, in your case, I would make sure to have them sign a mutual release of tenancy on the old lease 60 days before the new lease starts and you will be fine.

Perhaps others with more experience can chime in here as this was the first time I had dealt with such an issue.

This was in BC as well.
 

Thomas Beyer

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Does the current owner have a fixed term lease, or a month-to-month lease ? BIG difference. if month-to-month you just assume tenant and continue, possibly raise rents within the allowed guidelines with 3 months notice. If fixed term, existing landlord, as you darkness05 stated, needs to ensure existing lease is terminated for the agreed upon end date, and then you can offer a new one.
 

David9205

ergoCentric Dave
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Thanks for the input! I will speak to the seller and tenant about exiting the current lease on the same day my new lease begins.

The tenant is currently in a fixed term lease until Jan 1, 2017. I don't intend on raising the rent right now as they are already paying at or possibly a little higher than market rent.
 

Thomas Beyer

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I take over Nov 1, this is in Abbotsford, BC
If you do nothing it will be month to month by Jan. 1.

If you wish to do another one year lease, send them a reminder in November that their lease is up Dec. 31 and that they have to move out. Then send / include new lease with new terms (possibly higher than 3% increase as rents are going up fast in Abbotsford right now). If they do nothing be prepared - both mentally, legally, financially and emotionally - to evict them Jan 2 !
 

David9205

ergoCentric Dave
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I included a subject in my offer to purchase that the tenant must sign a new 1 year lease beginning Nov 1, 2016 which both the seller and tenant agreed to, just wasn't sure if the lease was enforceable to ask a tenant to sign a lease on a property which I don't own yet
 

Thomas Beyer

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Did you also include clause that buyer assumes lease and tenant ? You can wait for the lease renewal to December if you like.
 

Alvaro Sanchez

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Just take over the lease. Its best to have in your name but if not that is OK as well and legal. Lawyer will do the paperwork to take over the lease.
 
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