Honoring a Lease...

[Tamera]

Hi,
If I purchase a rental property with a tenant in place with a lease to April 2010 (the rent is way too low), what options, if any, do I have as a new owner, for increasing rent or removing tenant?

Thanks,

Tamera

 

[markbrad]

You could always ask for vacant possession, so you don`t have to worry about breaking the lease, the current owner does. Then you can set your rent at the level you want.

Mark

 

[Thomas Beyer]

QUOTE (markbrad @ Apr 25 2009, 04:44 PM) You could always ask for vacant possession, so you don`t have to worry about breaking the lease, the current owner does. Then you can set your rent at the level you want.
I assume this is in a rent controlled province like BC or ON ??

yes you can ask .. but assuming you won`t get it .. you should not buy the asset !

In some provinces you can ask a tenant to leave (once the lease is month-to-month) for substantial renovations (like BC) and then set rents at market after the reno is done.

What province is this property ?

 

[LillianHo]

If you live in BC, then check this form from Residential Tenancy Branch in BC ; APPLICATION ABOUT ADDITIONAL RENT INCREASE. You can also call their office and see what do they say.

http://www.rto.gov.bc.ca/documents/RTB-16.pdf

 

[invst4profit]

A quick search of your Provincial Tenancy Act should answer all of your questions.
Assuming you are preparing to buy your first property you should study the act and
understand all of the rules before you buy.
This is one of the more important topics that is all too often overlooked by investment
gurus and new investors.
Learn the rules of the game first or you could put yourself at a serious disadvantage.