Renters rights?

[buddahson]

I'm hoping someone on here may know something about renters rights in Colorado. Here's the situation.

I live in a privately owned 5 unit apartment building. I've been here for 5 years and I have been on a month to month lease for the past 4 years. I've never had an issue with the owners and it's been a great agreement for us both. However, they have just turned over management of the building to a property management company. They wrote me a letter to inform me of this and said "I believe the property management company will be interested in switching your lease over to a longer term lease-- either 6 months or 1 year.".

My question for you all, is whether or not they can make me sign this theoretical lease? Is there a legal precedence here, and what are my rights if I refuse? Can I stay for a specific amount of time before they can evict me? Is there anything I can use as leverage to negotiate a more agreeable lease term? Would such a process potentially hurt my credit or anything?

Now, I feel I should also state that I am not trying to beat up on anyone here nor do I feel entitled in any way. In all honesty, I may just comply or move, but I want to know my options first. I'm in the market to buy a house, and the rent here is cheap and the month to month lease is ideal if I buy a house. I'd be open to a 60 day notification clause in the contract if I can keep it month to month. I've also been considering renting a nicer place for a couple of years, but I didn't want to pay higher rent and sign a long term lease while trying to find a house.

I hate moving and with winter approaching, the idea of it is even worse. Can anyone make any suggestions?

Thanks,
Matt

[Clovis]

I'm sure Frank (Cycle Monkey) will chime in here, he recently got in a scuffle with his landlord and renter rights over the flooding.

A month to month lease may be terminated by either party with 30 days notice and without cause. With that in mind I would presume the property management company can terminate your lease if you elect not to agree to the new terms, provided they give you at least 30 days notice.

Depending on the demand for rentals in your area they may or may not actually do this. Unless there's another potential tenant banging down their door and/or willing to pay more I doubt they would elect to terminate the lease of an established tenant provided you have been a good renter. Can't blame them for asking though. A lease benefits you somewhat with regards to locking in the terms for a fixed period of time but it's no secret a lease is primarily to the benefit of the landlord. Can't blame them for trying though!

You're right about moving, it does suck! I just moved myself and most of my weekends this summer were spent packing boxes and getting ready instead of riding. At least you won't be packing in 95 degree heat though

If you decide to buy, send me a PM. I'm a mortgage loan officer with Great Western Bank and I offer mortgage discounts for CSC members. Interest rates are still low and there is lot less competition in the "off season" for housing. Spring and summer is when everyone buys, fall and winter are where you can get a deal.

Good luck!

Justin

Justin

[rybo]

Matt,

Read your lease carefully. The terms and conditions will be clearly spelled out as to how your lease operates, who can terminate it, when it can be terminated and for what reasons.

This will give you most of your answers.

[birchyboy]

You've been there 4 years on a month-to-month. Why are you not interested in signing a year?

Clovis - I disagree that the lease is for the benefit of the owner. It gives both parties legal standing with regard to the unit, and protects the renter from an owner being a douchecanoe, and vice versa. My tenant has been month-to-month for over a year and I haven't pressed it cause they are good people. But either party is subject to it being terminated at any time which is a cause of constant stress.

[buddahson]

You've been there 4 years on a month-to-month. Why are you not interested in signing a year?

I'm just trying to leave my options open. I've been looking at houses off and on for a few years, hoping to find a deal. Now I am in a position to put a full 20% down payment on a house so I am much more serious about buying. That said, I'm looking for the right house and I'm pretty picky. If I do find that house though, I'm ready to go. So I don't want to be paying a mortgage and rent for a long period of time. Two months or so would be reasonable but more than that I'd have to think about. Also, I'm currently living well below my means because of the cheaper rent and month to month lease. And without going into detail, lets just say I sleep with earplugs every night. If I'm going to sign a year lease, I may want to move to a nicer place.

[buddahson]

Matt,

Read your lease carefully. The terms and conditions will be clearly spelled out as to how your lease operates, who can terminate it, when it can be terminated and for what reasons.

This will give you most of your answers.

Truthfully, I don't think I ever signed a lease after my initial year. We just agreed upon the month to month terms in a letter. I'll have to see if I can find both and see what they say.

Also, thank you everyone for the input. And Clovis, I may hit you up about mortgage rates. I've spoken to my credit union, but it doesn't hurt to look at other options. I'm getting W2's together this week for pre-qualification.

[birchyboy]

I'm just trying to leave my options open. I've been looking at houses off and on for a few years, hoping to find a deal. Now I am in a position to put a full 20% down payment on a house so I am much more serious about buying. That said, I'm looking for the right house and I'm pretty picky. If I do find that house though, I'm ready to go. So I don't want to be paying a mortgage and rent for a long period of time. Two months or so would be reasonable but more than that I'd have to think about. Also, I'm currently living well below my means because of the cheaper rent and month to month lease. And without going into detail, lets just say I sleep with earplugs every night. If I'm going to sign a year lease, I may want to move to a nicer place.

Thanks. That makes sense in your situation then. Good luck!

[Ezzzzy1]

Clovis is a great broker. A lot of people on here will vouch for him and his services .

Best part about the help that he gave us was that he wasnt able to get the best rate for our situation and didnt even flinch getting us to the right guy. It was a great deal all around.

[rybo]

Matt -

In leases I've had in the past the terms of a "future state" are contained in the original lease: for example

The term of the lease is 1 year commencing on 1-Jan-2013 and ending on 31-Dec-2013 at that time the lease becomes a month to month lease with a 30 day minimum notice for termiation.



Look for language like that

[Ninja2]

This is not legal advice. I believe with a month-to-month lease, terminations can now occur 7 days days before month end, unless your lease specifies otherwise. That applies to both, landlords and tenants. It used to be 10 days in CO.
My non-lawyerly advice: Buy a house now. Mortgage rates are going up and home prices usually drop this time of year for the exact reasons you state - people do not want to move. So get a mortgage now and get a house. Even if it means moving your stuff into a temp place and then your own house. My 2 cents.

[laspariahs]

Renting is a scam, you are just throwing money away, buy a house ASAP, that's my advice. As others have mentioned rates and prices are going up, now is the time to buy, and get out from under the thumb of some slumlord.

[mxer]

Renting is a scam, you are just throwing money away, buy a house ASAP, that's my advice. As others have mentioned rates and prices are going up, now is the time to buy, and get out from under the thumb of some slumlord.

So throwing you money away on interest to a bank is much better?

Month to month means your "agreement" is terminated and renewed every month. I don't see you having a leg to stand on.

[asp_125]

Renting is a scam, you are just throwing money away, buy a house ASAP, that's my advice. As others have mentioned rates and prices are going up, now is the time to buy, and get out from under the thumb of some slumlord.

Not the whole picture. Depends what you want to do with your money. In addition to having equity, you're essentially betting that real estate returns you more on resale through appreciation than investing elsewhere. Traditionally you have to hold the investment for 5yrs for you to turn a profit. Now that the housing bubble has burst the gains may take even longer. In the shorter run, you might be able to rent inexpensively and invest the rest of your money at a greater return in the stock market or mutual fund. Not that that is entirely risk free either.

OTOH if you're spending that extra money on hookers and blow, you might want to re-prioritize.

[Kim-n-Dean]

So throwing you money away on interest to a bank is much better?

Now, that's some funny shit right there! Typical, great advice from the CSC! I agree (sarcastic). It is much better to give money to a landlord and never own the property. I have friends paying $1,000/month on their apartments. Meanwhile, I pay about the same for my $350,000 home, which I will own in a few years. Yeah, It's much better to not give the bank the interest!!!!!

Here's one for ya... If you're in the market for a vehicle, don't get an auto loan, use the equity in your home. An equity loan for a vehicle gets you the title to said vehicle right away (you own it instantly), the interest rates are way better and you get to write off the interest. Financial discipline and know how is the way to go!!...

[birchyboy]

OTOH if you're spending that extra money on hookers and blow, you might want to re-prioritize.

Why would someone want to re-prioritize? Sounds like fun!

[Kim-n-Dean]

Why would someone want to re-prioritize? Sounds like fun!

Pay your bills, first. Whatever is left over goes to hookers, blow, motorcycles, bail, etc. That's how we roll!!

[rforsythe]

Pay your bills, first. Whatever is left over goes to hookers, blow, motorcycles, bail, etc. That's how we roll!!

Not to mention, if you take out a home equity loan for your hookers and blow, you can write off the interest........

[Kim-n-Dean]

Not to mention, if you take out a home equity loan for your hookers and blow, you can write off the interest........

Damn!!!! I never thought of that!! You know, Ralph, I've told you over the years that I admire your thought process...

[laspariahs]

Frankly I don't see how renting is better, unless you just don't plan to live some where very long, less than 3 years. Renting is more expensive for a similar property period. I could rent my place out for at least 500 more than I pay in a mortgage. Sure I could pay some slumlord less to live in a shitty place, but why would I do that? Renting is just throwing money away, yes I do pay interest but at least I'm retaining some of that money I'm pumping out monthly Plus my interest rate is low, so it's not that much.

Have fun living in a rental if you want, but I'll take owning property over not. Honestly renting is for two types of people, people that are moving around a lot, and people who can't afford to own. Other than that.....

[TinkerinWstuff]

There are plenty of good reasons to rent. Wife and I were recently looking at renting out two of our properties while living in one rented from someone else. All part of a master plan.

I don't see why a 6mo lease would be a big deal. You haven't even identified a property yet so it'll be three months anyway before you find and close on anything. So if you really found the dream home and rent is so cheap, why would you let a couple month of rent stand in your way?

If the owners/mgmt company are trying to use the existing property as an asset toward the purchase of another property or if they are considering selling, then having valid leases on paper is important.

[buddahson]

So I ended up signing a 6 month lease that began Dec. 1st. Then I found a house two weeks later and just closed on it yesterday. I'm trying to work with the property management to end the lease at the end of February. They are being pretty reasonable, so hopefully we can work something out.

[gator4life108]

Renting is a scam, you are just throwing money away, buy a house ASAP, that's my advice. As others have mentioned rates and prices are going up, now is the time to buy, and get out from under the thumb of some slumlord.

Absolutely right...I move into my new house middle of Feb. Currently paying almost $1600 in rent for a house and my mortgage on new one will be around $1000. Although without VA I could not have gotten into a new house because of the normal 10-20% down payment needed.

I don't like renting as it's throwing money away each month.

[kingtut]

To each his own. I wouldn't say that all landlords are scumbags, or that renting is a waste either. The flip side of the coin is- some landlords get dicked over by trashy renters too. One of the worst financial mistakes I ever made, was buying just to buy..thinking it was an investment. I was just like some of those above, thinking that I didn't want to throw money away on rent. It's certainly alluring to not be tied down to ownership.

Alas, depends on each individual situation.

[gator4life108]

To each his own. I wouldn't say that all landlords are scumbags, or that renting is a waste either. The flip side of the coin is- some landlords get dicked over by trashy renters too. One of the worst financial mistakes I ever made, was buying just to buy..thinking it was an investment. I was just like some of those above, thinking that I didn't want to throw money away on rent. It's certainly alluring to not be tied down to ownership.

Alas, depends on each individual situation.

I rented my old house in Colorado Springs and it didn't matter how nice I was, the renters who happened to be old co-workers trashed the place. Problem is today's society and nobody wants to take of other people's belongings. Use something from another person and trash it. I was raised to take care of someone's property and return it to the owner in the same condition or better than received.