I have a crappy problem.
I just rented a house with two roommates and it's perfect - 4 BR, 2.5BA, basement. Good price.
We've been in the place for just over two weeks and today I received a call from the owner's agent saying they want to sell it and need us to move out so they can renovate.
Now we did sign a 1-year lease so I assume we have some rights in this case, but it seems like a tough situation because they would probably treat us like crap if we don't cooperate. Anyway, they've offered to have their agent assist us in finding a comparable place and pay us one months rent and moving expenses.
Is that an adequate compensation package? Should we seek some other recourse?
We're extremely disappointed, as it took a long time for us to find a house that suited our needs so well (we're a metal band that needs space to play).
TIA
Edit: I have reviewed the lease and do not see any provision for the owner to terminate the contract prior to the end of the term...
Depends on your state law, but basically in most states the lease essentially gives you full rights to the use of the property for the term of the lease (even in the event of a sale) except in the case of a foreclosure. You could tell them to pound sand or negotiate for what you feel is fair. I had to arbitrate a case like this and the owner ended up fronting the difference between $600 and $850 in rent for one year to entice the tenants to move. Moving expenses weren't an issue as they hadn't fully moved in yet. Note that I'm not a lawyer and am not offering legally advice. Consult an attorney or you state's real estate commission to determine your legal recourse.
Tenants do have rights. Contact your local authority on housing and landlord/tenant law. I doubt the owner can force you to move if you have a lease, but he can work out a deal to get you to move (we call it "cash for keys").
Thanks guys.Honestly, I want to tell them to pound sand. But do you think that could open up a can of worms?
For instance, our lease says "Only one rent check will be accepted per property each month." Well we have an informal verbal agreement to give them three checks, one from each tenant. Do you think it's possible they'd get vindictive enough to call out little things like that to say we broke the lease?
I figure we have two options: play hard ball and stay, or move on our own terms to a new place with some generous amount of reimbursed rent and moving expenses.
We want option #1. But as you can see, I'm worried.
LAST Thing is the world I would be interested in is helping someone get over on a LL. But this is FBGs, and that is not the case here.State Law is different, but I am absolutely positive that contract law must be honored in every state. A lease does a number of things. For the LL it assures against vacancy without breech, along with the ability to standardize rules of a conduct. For the Tenant, it is protection in cases just like this. They can't throw away your lease, kick you out without cause, or change any financial amounts.
Your lease is in place, and protects you from moving. You have every single card, and the owner has none at this point. The owner is hoping you don't understand that, and will take an offer of cash for keys. They give you some amount of compensation, you return the unit in move in condition by a certain date.
Should you go this route, only you know what the compensation needs to be.
You can ABSOLUTELY stay, just understand that they MAY do a number of things to make your stay painful. Depending on your State Law and what your contract states, they can require you to keep the place spotless at all times as they come and go as they please showing the house to potential investors. (If so, try and set up a weekly "Open House" time with them. I doubt I would bite, but who knows?)
They most likely are basically required to give you a 24 hour notice to enter, but your contract could say differently. Mine does, and my verbage has held up to give me access within reason.
If it becomes a war, expect "Notices to Cure" will start arriving at all times. Notice on the front door to Mow the grass within 3 days, Clean up the house or they will hire a professional cleaning team at YOUR expense, Professionally clean the carpet within X or they will hire at your expense, Your car tire sat off the drive way, and they bill you an outrageous amount for yard repair, any litany of notices that you will need to address or be in violation of of your lease where they can start the eviction process. Expect that they will scrutinize your every action.
SHOULD you decide to uphold your completely legal position, most of this is going to come down to your lease. Mine is a 9 page monster. If yours is one from Office Max, you are most likely in a great spot to fight if that is the path you decide to walk.
If so, I would encourage you to scan your lease and post it in this thread. Send it to Anderson1170@msn.com if you don't wish to post it for some reason. Unless you are in Indiana, I won't know your exact state laws, but if something is glaring, they can certainly be looked up easily. Most things are constant in all states dealing with contract law.
This is totally your call, but if you do opt for Cash for Keys, you hold all the cards. Make sure the compensation is something that you are happy with.
Almost forgot, should they sell it, you need to know that the lease follows the owner, not the property, and the new owner will be bound to the terms of the lease.
for later.
Almost exactly what I was going to write. If you have a competent LL they are going to have a "the Lease is the contract" and try and blow off any verbal conversations of actions on their part up to now.
Understood.
