I own a condo in Florida. I never had any problems with my tenant as far as on time payment is concerned. But now I have a problem of a different nature... I decided to lease this condo to a different tenants with option to buy. I notified the current tenant 60 and then 30 days in advance about my intentions and asked him to vacate the property. But my current tenant doesn't want to move out. The lease is about to be expired on Jan. 01, 2008. In that lease it says that the tenant has an option to extend it. But I, as a landlord, don't want to give him that option because I'm planning to sell the property. I'm afraid to lose the potential buyers. What should I do, how do I get rid of this tenant? What legal rights do I have? Can I sue this tenant for lost profit, etc. Thank you.

Hello Ram:

You say that in the written lease the tenant has the option to extend, but that now you don't want him to have that option. Really?

Well, he DOES have the option whether you like it or not. You have NO rights other than those in your lease and state law, and if you lose profit, it's because of what YOU put in your lease - not because he's going along with it.

IF you want to get rid of him, offer to pay his moving expenses. Offer to pay his first and last months rent in a new place... Offer him something...

excon

What, exactly, does the lease say? I would be very surprised if it gives the tenant the right to extend the lease without the landlord's agreement. But, if it does, then you are stuck. You might try offering the tenant a financial incentive to move.

If the lease doesn't give the tenant the option to extend at their discretion, you can advise the tenant that if he doesn't move out, and you lose the sale, you will sue him for the loses incurred.

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Originally Posted by excon

Hello Ram:

You say that in the written lease the tenant has the option to extend, but that now you don't want him to have that option. Really??

Well, he DOES have the option whether you like it or not. You have NO rights other than those in your lease and state law, and if you lose profit, it's because of what YOU put in your lease - not because he's going along with it.

IF you want to get rid of him, offer to pay his moving expenses. Offer to pay his first and last months rent in a new place.... Offer him something...

excon

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Thanks, excon, for the answer. I want to clarify the picture for you: In the lease it says that "Lanlord provides to Tenant an option to extend this lease". But it also says that "Tenant shall notify Landlord not later than 60 days prior to the expiration of the lease, about his intention"... which he failed to do so. I've sent him numerous reminders via e-mail (I have all the printouts) let alone voice messages. He didn't respond. Only when I sent him an e-mail indicating about my intention to sell the property and asking him to vacate it by the expiration date (o1/o1/o8), he responded... but it was already way too late. What do I do in a situation like that?
Again, thank you for your answer.

Well your use of e-mail insteaqd of written notification can be a problem also. Your are correct that his failure to notify you of his intention to exercise the option negates that clause. But you are also required to notifyhim in writing of your intention to not renew the lease.

In any case, if he refuses to leave, this ends up in court. A judge will rule whether the notifications were suffucient or not. If you are upheld and you lose the sale, you can still sue him for damages. So infoming him of that may induce him to leave.

Hello again, Ram:

I think ScottGem is right. If you persist and this winds up in court, it's not certain how it would come out. Until recently, emails would hold up in court. Today, however, there is software that can fake emails. So, unless you can subpoena his hard drive, your emails very well may be worthless.

Besides, it doesn't appear that you live in Florida, consequently making it much more expensive to sue.

But, there could be a positive outcome in any case. It just depends on how you approach it. Given the real estate market, it may be EASIER to sell your condo as a rental, instead of selling it as an owner occupied house.

That way, everybody is happy. You sell it, the tenant gets to stay, and the new owners have some cash flow.

excon

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Originally Posted by excon

Hello again, Ram:

I think ScottGem is right. If you persist and this winds up in court, it's not certain how it would come out. Until recently, emails would hold up in court. Today, however, there is software that can fake emails. So, unless you can subpoena his hard drive, your emails very well may be worthless.

Besides, it doesn’t appear that you live in Florida, consequently making it much more expensive to sue.

But, there could be a positive outcome in any case. It just depends on how you approach it. Given the real estate market, it may be EASIER to sell your condo as a rental, instead of selling it as an owner occupied house.

That way, everybody is happy. You sell it, the tenant gets to stay, and the new owners have some cash flow.

excon

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Well, that sounds beautiful... but... the buyer intends to live in that condo... This is catch 22...

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Originally Posted by Rambaz

Well, that sounds beautiful... but... the buyer intends to live in that condo... This is catch 22...

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Hello again, Ram:

Then I'm back to my first solution. Offer your tenant money. Look, it's not a matter of who's right here. It's a matter of what's most expedient.

excon

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Originally Posted by excon

Offer your tenant money. Look, it's not a matter of who's right here. It's a matter of what's is most expedient.

excon

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I agree with excon here. There is no question in my mind that you can get the tenant out. The question is whether you can get him out in time to finalize the sale. You have two ways to do that, threaten him with a suit if he causes you to lose the sale. You will probably win but may have trouble collecting. Or sweeten the pot and offer hm cash to move

You may want to check the FL laws regarding selling a property that is rented. In most states the sale does not void the lease, the new owner just becomes a landlord. However, in some states if the property is sold and the buyer intends to occupy the property the lease terminates.

While ballenger's answer is actually correct it doesn't fit your situation since the lease is expiring 1/1 and you have indicated you will note renew.

I was suggesting that angle because it makes the right to renew a mute point.