Question: How long should we retain old leases at our apartment complex? I have heard two years. Is this correct?
Ted Kimball
Kimball, Tirey & St. John LLP
Answer: The statute of limitations (the time one has to bring a lawsuit) for written leases is four years. Therefore, leases should be retained a minimum of four years from the date of the vacancy.
Question: One of our tenants is buying a home and gave us a 30-day notice. Now the tenant wants to extend escrow 15 more days beyond the 30-day period. The tenant is willing to pay for the additional rent. Should we require a new 30-day notice?
Answer: If you are in agreement to the additional 15 days, agree in writing to extend the 30-day notice period to expire on midnight on the agreed extension. Otherwise, the court may believe that you waived your right under the 30-day notice by allowing the tenant to remain in possession and paying rent beyond the 30-day notice period.
Question: We just recently purchased a property with below-market rents and intend on raising rents. Which is preferable: to send out a 30-day notice to raise the rent first, or to have the residents sign a month-to-month agreement, then send out a 30-day notice?
Answer: Legally, when you purchase rental property, you “step into the shoes” of the previous owner, and you are bound by whatever lease agreement is in place. If it is month-to-month, you can serve a 30-day notice to change the terms, including rent increase. If the rent is increased more than 10 percent from what it was one year ago, a 60-day notice must be served.
Kimball, Tirey & St. John LLP is a full service real estate law firm representing residential and commercial property owners and managers. This article is for general information purposes only. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our office. If you have questions, please contact your local KTS office. For contact information, please visit our website: www.kts-law.com. For past Legal Alerts, Questions & Answers, and Legal Articles, please consult the resource library section of our website.