Should tenant pay rent when Landlord is not making the house payment?

By
Real Estate Broker with RE/MAX Dallas Suburbs 0534986

Should Tenant pay rent when Landlord is not making the house payment?

According to the Texas Attorney Hotline, the answer is yes. They are under a lease agreement and should continue to pay the rent. They are obligated by the lease agreement. However, with that said ,they should also file notice and move out before the home forecloses.

Unfortunately, This has happened recently to two of our tenants. They started receiving notices that the home was going into foreclosure. The sellers were not honest with us about their situation and we sent the rent to them every month as we were obligated to do.

All we can do as a Property Manager is work through the situation and refund the full deposit to the tenant when they move out. 

 

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Russell & Tracy Lee Parker 

RE/MAX Dallas Suburbs~Wylie Office~972-429-1895

 972)365-7198 Tracy Lee     (214) 477-5609 Russell 

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Topic:
ActiveRain Community
Groups:
Dallas Real Estate
Rental Properties.
Texas Real Estate
Property Management
Tags:
property management collin county
tx
property management in wylie
tenants rights

Comments 36 New Comment

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Rainmaker
676,577
Jon Kolsky
REALTOR® Long Beach, CA
Kolsky Group/Spellens Realty

Tracy~ great post & comments. I think the thing that gets lost in translation, "commitment", just like the owner of the building has a commitment, so does the tenant. Renters have rights just like property owners, if a renter or property manger has an issue, small claim court is the perfect solution. Owners must abide by the laws, just like renters and property managers!

No one ever wants to be a lout by not paying the rent, just like no one wants to get screwed-over!

August 21, 2012 09:17 AM
Rainer
276,566
Steven Cook
- Pierce, King, Kitsap, Thurston, Mason Counties

Tracy -- interesting that you should bring this up -- have a client who is trying to buy the house he is renting, and he is concerned that the homeowner is not making the mortgage payments.  I told him, keep making the rent payments-- don't kneed to have that clunker in the process of buying.

August 21, 2012 10:50 AM
Rainmaker
1,113,750
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

@Karen Anne..most worthy and relevant point...thank you and thank the original poster (OP) too

August 21, 2012 11:09 AM
Rainer
245,228
Mike Dobbins
Scottsdale, Cave Creek, Carefree
West USA Realty

In AZ the lease will survive a foreclosure, and if they are paying "market" value for the home and up to date on lease payments, they can stay in home till the end of their lease, per the AZ Landlord Tenant Act. They may have a hard time getting back their deposits, but the new owners, be it a bank or new owner who picked it up at trustees sale will not have the deposts to give back. Problem is most tenants stop paying rent when they find out owners home is going to foreclosure. 

August 21, 2012 11:17 AM
Rainmaker
434,488
Kathy Stoltman
Ventura County Real Estate Consultant 805-746-1793
Rockwood Realty

It is the same here, the lease is a powerful document and does a lot to protect the tenants, but in a case like this it is sad, however the tenants do still have a roof over their heads.

August 21, 2012 12:04 PM
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