Texas Sale of Rental Property/Early Termination

[pamamonster]

I own rental property in Texas. One of my properties has a one year lease agreement, however, it has become necessary for me to put the property up for sale. According to my lease agreement, I have the right at any time to display for sale signs and myself or my agents have the right to enter the premises for that purpose. It also states that the tenant will be given no less than 30 days' notice to vacate upon sale of the property. My tenant is very upset about all of this. I've reassured her that this is in no way due to anything she's done or failed to do or her personally. I am not trying to be malicious, I am trying to feed my family. I pointed out to her where it said in her contract that we had the right to do that. We offered, out of the kindness of our hearts, to pay a 3rd party moving company to take care of all of that for her when the house sells. I tried to accommodate the sale of the property to her (offering it at a reduced price, reduced realtor commission, sellers contributions, etc), though she refuses to even try. I don't know where to go from here, but I'm thinking an early termination of the lease would be in everyone's best interests because she's so upset about this. Any advice?

 

[Gail_in_Georgia]

When a rental property is sold, the current lease "rolls over" to the new owner. Unless the tenant agrees to move, the lease remains in effect until it would normally terminate.

Quite frankly, it's very kind of you to offer to kick her out of her place of residence when (I'm assuming) she's been paying her rent on time and not breaking the rules of the lease just because you've managed to sell the place. Nice of you to offer to pay her moving expenses when you're the one initiating this entire event.

How about sweetening the deal and throwing in that you'll pay for her first months rent (or deposit) on a new place for her to live.

Look; landlords can put all sorts of clauses in their lease; if it doesn't follow landlord/tenant statutes for the state, these are useless, even if the tenant signs the lease agreeing to them.

Gail

 

[pamamonster]

Quite frankly, it's very kind of you to offer to kick her out of her place of residence when (I'm assuming) she's been paying her rent on time and not breaking the rules of the lease just because you've managed to sell the place. Nice of you to offer to pay her moving expenses when you're the one initiating this entire event.

I have not sold the property yet, but if I don't, it will go into foreclosure. I understand that I'm the one causing the problem, which is why we offered to pay her moving expenses, and I've tried talking with her, but she's understandably upset with the whole ordeal. If I could afford to offer her a better option, I would. And no, her rent no longer covers the expenses of the property because my taxes have gone up significantly.

 

[army judge]

I have not sold the property yet, but if I don't, it will go into foreclosure. I understand that I'm the one causing the problem, which is why we offered to pay her moving expenses, and I've tried talking with her, but she's understandably upset with the whole ordeal. If I could afford to offer her a better option, I would. And no, her rent no longer covers the expenses of the property because my taxes have gone up significantly.

She doesn't have to take your offer.
While your ownership of the property may be in jeopardy, she's secure in her lease.

If you keep pushing this, it could cost you more than you imagine. You can incent her to leave. She can refuse or counter-offer. In the end, she doesn't have to move.

If you sell the property, the new owner buys her tenancy. If you can't sell because she won't move, you'll be foreclosed. But, she will be secure in her leasehold.

She's not a serf. She's a tenant. You're not a lord. You're a landlord. You own the property. She has a lease that gives her exclusive possession and use of the property, whether you sell it or not.

You can put up all the for sale signs you want. But, you had better respect her leasehold. You can't just barge in with a prospective buyer whenever you want. You have to make appointments with her and respect her leasehold.



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