Tenant fears condo conversion will bring eviction

Question: I have two months left on my current lease. I have been hearing a lot about rental apartment buildings being converted to condominium ownership. I am concerned since we have a new owner of the building who has purchased apartment buildings and converted them to condos. I am worried that I will have to move suddenly. If the building goes to sale as condos and someone purchases my unit, what happens if I have a lease that runs past the closing date? What are my choices on breaking the lease at the time of closing? Last week the new owner's management company offered a new one-year lease to be signed by me at the time of closing. Could I leave or must I stay?

Property Manager Griswold replies:

Since your lease is expiring in two months, you have the option of leaving then or accepting the new owner's offer of the one-year lease. Despite the reputation or track record of the incoming owner, it appears that the new owner is not planning an immediate conversion of your apartment building to condos as they offered you a one-year lease. That new lease must be honored not only by the new owner that signed the lease with you but also any future owners whether the building is converted to condos and sold unit-by-unit or the entire building is sold as an apartment building. Thus, it is really up to you whether you want to just stick with the current lease for the next two months and then leave or if you will accept the new 12-month lease signed by the incoming owner which legally protects you for at least 12 months of occupancy. Another factor to keep in mind is that many owners are required to give extended notices or even moving allowances to current tenants when apartment buildings are converted to condos, plus you may have an opportunity to purchase the unit yourself if it is converted to individual condominium units. Often these units are available under favorable terms as the condo converter can pass along some of their savings in marketing and commissions if they sell to the current tenants.

Question: We rented an apartment for four years before finding another unit nearby that was better suited to our needs. The onsite apartment manager (who is a longtime representative of the owner) told us we would get our full deposit of $900 ($500 general and $400 pet deposit) back if the kitchen and bathroom were cleaned and the rest of the apartment had sustained only reasonable wear and tear. After we moved out, I went back and talked to the handyman (another long-term employee of the building owner) who was renovating the unit. He recommended full refund of our deposit. Three weeks after we officially moved out a professional property management company contacted us saying they had assumed responsibility for collecting money we owed the apartment owner for damages and cleaning fees, which was greater than our deposit. Needless to say, the original manager and handyman are no longer employed there any more, and the new management company is ignoring our requests for resolution. What can we do?

Property Manager Griswold replies:

In my book "Property Management for Dummies," I encourage owners to make management changes as smoothly as possible. It seems to me that you are entitled to return of your security deposit. A change in management company will not alter your previous understanding as the management company is simply a new agent for the same owner. You left the premises in good condition and repair, which was acknowledged by the handyman who was working as the agent for the owner at the time. Under these circumstances, there is no reason why you should not have received the return of your entire deposit. If your deposit is not returned, you will have to take the landlord and the property management company to small claims court. The landlord and the old property management company are both responsible to you for the deposit. You should name both of them as co-defendants; then they can sort it out between the two of them as to who should pay the deposit to you. You may even be able to track down the former onsite apartment manager and handyman and have them testify on your behalf. Since they were apparently terminated with the arrival of the new management company, they may be willing to offer their testimony in support of your claim!

This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of "Property Management for Dummies" and co-author of "Real Estate Investing for Dummies," and San Diego attorneys Steven R. Kellman, director of the Tenant's Legal Center, and Ted Smith, principal in a firm representing landlords.

E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com.

Questions should be brief and cannot be answered individually.

Copyright 2005 Inman News