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vagirl30 · Jan 18, 2009, 02:42 PM

We rented a house 6 months ago, we signed a year lease. We are now buying a house and have informed the property manager and owner. Well, the owner has decided she is not going to attempt to re-rent the property early or move back in. She is just going to soak us for the next 6 months of rent and then she will decide if she is going to re-rent or move back in. It has now come to our attention that the property manager is NOT licensed to practice real estate or property management. She has been collecting rent from us and is getting paid $100 a month by the owner. Is our lease valid since it is signed by a non-licensed property manager and is NOT signed by the owner? This property manager is also managing other homes without a license...

LisaB4657 · Jan 18, 2009, 03:22 PM

First, Va. Law requires that the landlord must mitigate their damages if the tenant breaks the lease. That means that the landlord must make a reasonable effort to find a new tenant.

Second, Va. Law requires that a property manager be licensed by the state. If the person who is managing the property is not individually licensed but is an employee of a licensed property manager or realtor then they can show units, provide info, and accept applications and deposits. They cannot sign leases on behalf of the landlord. So based on what you've said here it appears that your lease is not valid.

ScottGem · Jan 18, 2009, 03:26 PM

Your lease is probably valid. The fact that you have been paying rent and living there for 6 months is enough to validate the lease. Whether the property manager is illegally managing properties depends on your location. Licensing may not be required. I hate disagreeing with Lisa, but I think a court would uphold the lease, even if the lease were not properly signed, because of you have been living there and paying. I would check with your real estate attorney (assuming you have one because you are buying a house).

If the va in your name means you live in VA, then your landlord is required to make a good faith effort to rerent the property. They can't just sit on the 6 months. But you WILL be responsible for the balance of the lease or until the unit is rented or occupied. Unfortunately the landlord can, potentially show a good faith effort and still fudge it enough not to rent.

Does the lease permit sub-lets? If not, then your only alternative is to find a replacement tenant. If you can show that you presented the landlord with a viable tenant and they refused them, you might get the lease terminated early.

vagirl30 · Jan 18, 2009, 05:52 PM

This IS in the state of Virginia. She does NOT work for a broker... she is working out of her home...
Is my lease valid?

LisaB4657 · Jan 18, 2009, 05:56 PM

I still think it's an invalid lease, Scott. It was signed by someone who is not an authorized representative of the landlord, at least not by VA law. Since the OP's been living there and paying rent I would argue that it's a month-to-month lease and they have the right to terminate with 30 days advance written notice.

ScottGem · Jan 18, 2009, 06:10 PM

Lisa is a Real Estate atty in NJ, I'm not. So she has a better track record here than I do.

But I still think you need to consult your local attorney to be sure.

Fr_Chuck · Jan 18, 2009, 06:49 PM

I would say the fact that they may or may not be a licened to do property management is not as big issue

They are obligated to try and rent the property out. So in court you can ask for proof, advertisements, rental signs and the such showing thy are trying to rent.

Also just working out of their house does not mean they are not licensed, many home owners hire real estate agents to manage property and they just work out of their home ( make some extra money)

vagirl30 · Jan 18, 2009, 08:51 PM

Here's the deal though, I AM a licensed real estate agent IN VIRGINIA!! I looked in the board of REALTORS... she is NOT licensed... has never been! I am unsure of how this works for me since I am a real estate agent, and do not handle property management issues.
I would think, as an agent that I would do whatever I could to make sure I am protecting my client AND my tenants!

ScottGem · Jan 19, 2009, 06:55 AM

You would need to read the law that requires anyone representing a landlord to rent and manage properties be licensed. The wording of the statute may deal with penalties and consequences of not being licensed. My gut feeling (and since I'm not an atty, Lisa's gut feeling is probably better) is that this wouldn't hold up in court to invalidate the lease. Again, I could be very wrong here. But without seeing the statute, I'm not sure.

So we're back to consulting an attorney.

Let me add one point here. You are knowlingly breaking your lease. If the landlord decides not to allow it, they will sue you for the balance of the rent. So you will go into court and try to invalidate the lease. Bottomline is this WILL go to court and its what the court will rule that matters. That's why you need to consult a local atty.