Benjamin has to navigate this process carefully, ensuring he can make the right choices about his new property without trampling the rights of tenants who have lived in the building for a long time. And experts say that may not be as easy as he hopes.
Inheriting a home doesn’t always mean you can evict the tenants
The first thing Benjamin needs to realize is that the death of his father and the transfer of the home to him don’t automatically mean he can just kick the tenants to the curb.
“Inheriting a home does not automatically terminate existing tenancies,” Cora Whitney, a business and real estate attorney at Malek + Malek, told Moneywise. “The estate or successor owner generally assumes the former owner’s landlord obligations and must honor any existing lease.”
William Plevy, an attorney and California real estate broker, also confirmed to Moneywise that this was the rule, but said that Benjamin should explore exactly what this means for him.
“The new owner generally takes the property subject to the existing tenancy,” Plevy said. “Before deciding what to do, determine whether there is a written lease, whether the tenants are month-to-month, how long they have occupied the property, what state and local tenant protections apply, and whether there is a legally permissible basis for terminating the tenancy.”
In some cases, these documents won’t exist, but the tenants still have rights. “If the tenant has no written lease, then state and local law will define the tenant’s right to remain in the property,” Howard Jacobson, real estate lawyer, broker and builder, told Moneywise. “Usually, a tenant without a written lease has only a month-to-month tenancy and can be given notice of termination on 30 days’ notice.” However, the rules do vary by state.
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What are your options if you inherit a home with tenants?
The rights of the tenants limit, but don’t eliminate, Benjamin’s options. He’ll need to understand the specific state laws governing inheritance and property sales to determine what he should do next.
Whitney said that in some states, if you inherit property and you plan to move into the home, allow a family member to move in or sell the home, you may be able to provide notice to the tenants and ask them to leave after a set time. However, “it depends on state law.”
