By John Michailidis, MSIRE, JD – broker/owner Real Property Management of Sarasota & Manatee
The short answer: If you inherit a rental with tenants, the lease usually stays in place. The tenant does not have to move just because the owner has died. Start by finding the lease and checking who has the legal right to make decisions for the property.
We help owners in Sarasota, Manatee, and the Charlotte County communities we serve. At Real Property Management of Sarasota & Manatee, we start with one question: did the home already have a property manager, or did the previous owner handle it alone?
Read the lease before making changes
A new owner does not mean a new set of rules for the tenant. Find the lease, any written changes to it, and the rent payment records. Read them before you discuss a rent increase or a move-out date.
Next, check who can make decisions for the home. It may be you, or it may still be the person handling the estate or trust. If you are not sure, ask the attorney handling those matters. Do this before signing new papers or changing where the rent money goes.
Still unsure whether to keep the home? Read our guide to keeping or selling an inherited house. This article focuses on what to do when a tenant already lives there.
If the same property manager stays
If our team already manages the home and stays on, little may change for the tenant. They can keep using the same rent payment system. They still know whom to call when something needs repair.
We do need to review the owner’s paperwork. We check who can act for the property, update the management papers as needed, and confirm where owner payments should go. We may need a death certificate and papers that show who owns the home or can act for it. A death certificate alone may not tell us that.
Then we help you learn how the rental works. Your parent may have known what to expect from a property manager. You may be new to all of it. We explain what we do, how we handle repairs, and what the monthly reports mean. You do not have to know it all before you call.
If the previous owner handled the rental alone
If you hire us to take over, we first ask for the lease or rental agreement. Then we help make the change clear for the tenant.
- You introduce us. Once we confirm you can act for the home, we ask you to tell the tenant that Real Property Management of Sarasota & Manatee will contact them. The tenant should not have to guess who we are.
- We explain the next steps. Our team contacts the tenant and explains how to pay rent, report a problem, and reach us.
- We set up online payments. We help the tenant get started with their online account, called a tenant portal. They know where to pay and whom to ask for help.
- We ask to walk through the home. We arrange a visit with the tenant to check for repair needs. We follow the rules for notice and entry rather than just showing up.
We use much the same steps when an owner switches to us from another manager. The extra step here is helping you learn about a rental you may never have planned to own.
What if there is no written lease?
No written lease does not mean no rules. Florida law still protects the tenant, and the previous owner may have made a spoken agreement.
First, find out what they agreed to. If they did not agree on how long the rental would last, how often rent is due usually sets the rental period. For example, rent due each month generally means a month-to-month rental in that case. Missing paperwork alone does not prove that.
We prefer a clear written lease. It puts the rules in one place, so both sides know what to expect. But we first need to review the agreement already in place. Ask your own attorney for help if the terms are unclear or you want to end the rental.
Can you sell the home or move into it?
You can sell a rental with a tenant still living there. But selling it does not usually end the lease. Selling the home and having it empty are two different things.
If you want to move in, or a buyer wants an empty home, have your own attorney check the lease first. Find out what notice is needed and when the tenant could legally be required to leave. Do not promise a date before you know the answer. Even a month-to-month rental does not let you take the home back right away.
If you might keep renting it out, our five questions about selling or renting an inherited home can help you compare your options. Start with the facts about the home and the lease, not a rushed decision.
What should you do first?
Find the lease and call the current property manager, if there is one. If the previous owner managed the home alone, gather the lease and rent records. Check who can act for the home before making changes.
You do not have to become a skilled landlord overnight. See what our property management team handles, or learn more about John Michailidis before you call.
Frequently Asked Questions
Does inheriting a rental cancel the tenant's lease?
Usually, no. The lease does not end just because the owner dies. Read the agreement and check who can act for the home before discussing changes with the tenant.
Can I keep the same property manager?
Often, yes. First, the manager needs to check the management agreement and who can make decisions for the home. Our goal is to keep things running smoothly while we update the owner’s paperwork.
What if I cannot find a written lease?
The tenant still has rights under Florida law. There may also be a spoken agreement. Have the terms checked before changing the rent or asking the tenant to leave.
Who tells the tenant about the new property manager?
In our process, the owner who has the right to act introduces us first. We then contact the tenant, explain the next steps, help set up online rent payments, and arrange a visit to check for repairs.
Do I have to wait for the lease to end before selling?
Not always. You can sell with a tenant in place, but the sale does not usually end the lease. Ask your own attorney to check it before promising a buyer that the home will be empty.
Let us help you sort out the next step
Tell us whether the home has a manager and what you hope to do with it. Real Property Management of Sarasota & Manatee can explain how we would help you manage the rental.
Request a free rental evaluation or call 941-225-8183. Bring the lease if you have it. If you cannot find one, tell us that, too.
This content is provided for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. Readers should consult with licensed professionals regarding their specific circumstances.
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