One of the biggest surprises for new landlords is learning that a lease doesn’t belong to you. It belongs to the property.
A lease is what lawyers call a covenant that runs with the land. Plainly stated, that means when the property transfers to a new owner, the lease transfers too. Lock, stock, and every little clause the previous owner agreed to.
The moment you sign those closing papers, you step into the shoes of the prior landlord. Whatever deal they had with the tenant, that’s your deal now. Lower-than-market rent? Yours. A lease that runs for another 14 months? Yours. A provision letting the tenant keep three chickens in the backyard? Also yours.
Here’s the deal. You can’t amend a lease mid-term without the tenant’s consent. Period.
A lease is a contract. Both parties signed it. Both parties are bound by it. And a contract cannot be unilaterally changed by one side. Period. Not by you, not by the tenant — not without mutual written agreement.
If you want to change something in the lease, or increase rent, you must wait until the lease expires, then offer a new lease with updated terms. At that point, the tenant can choose to accept, negotiate, or move.
If you want to change a lease term mid-tenancy, you need the tenant to agree to it in writing. A properly executed lease addendum, signed by both parties, works. A text message probably doesn’t. A verbal conversation definitely doesn’t.
When you consider buying a property and inheriting its leases, best practices are:
If a tenant is on a month-to-month arrangement, you have more flexibility. In Minnesota, a landlord can change the terms of a month-to-month tenancy with proper written notice. This is typically one full rental period in advance. So if rent is due on the first, you’d need to give notice before the first of the month prior to when the change takes effect.
That applies to raising rent or changing policies. It’s important to do it write. Provide written notice, time it property, and make sure any changes comply with city ordinances and state law.
Buying rental property is exciting. But inherited leases are inherited obligations, and the law is not on your side if you try to steamroll through them. The tenants who were living there before you closed have rights. Those rights don’t disappear because you’re the new owner.