Can a landlord break a lease to renovate.

[quincy]

… My landlord is a man who owns 10 of these side by side houses via an LLC. He died suddenly in May. His wife and family really don't have the stamina to be the property owners. They are looking at selling the entire lot of 10 houses to a "broker" real estate type person.

My question is, if I am in a year long lease with the current owner …

There are an awful lot of people today in the business of flipping properties. They buy properties rapidly, often for cash and want to renovate and turn them around quickly. Therefore while I won't disagree that it is possible that its a family LLC, I think it is more likely that it is one of the companies or individuals who are in that business.

That doesn’t fit with what we’ve been told.

 

[LdiJ]

Original Post:

"What is the name of your state? Minnesota. I live in a side by side small house. My landlord is a man who owns 10 of these side by side houses via an LLC. He died suddenly in May. His wife and family really don't have the stamina to be the property owners. They are looking at selling the entire lot of 10 houses to a "broker" real estate type person.

My question is, if I am in a year long lease with the current owner does the new landlord have to honor that lease or can they cancel the lease and evict me to renovate the side by side houses. I hear they are wanting to drop quite a bit of $ into the side by side units and resell. "

That clearly fits the scenario of someone flipping the units.

Yes, the units are in good condition according to the OP however he also stated that the potential new landlords wanted to change them from 1 bedroom units to two bedroom units so that they would be more saleable. Again, fits the scenario of someone flipping the units.

 

[quincy]

Original Post:

"What is the name of your state? Minnesota. I live in a side by side small house. My landlord is a man who owns 10 of these side by side houses via an LLC. He died suddenly in May. His wife and family really don't have the stamina to be the property owners. They are looking at selling the entire lot of 10 houses to a "broker" real estate type person.

My question is, if I am in a year long lease with the current owner does the new landlord have to honor that lease or can they cancel the lease and evict me to renovate the side by side houses. I hear they are wanting to drop quite a bit of $ into the side by side units and resell. "

That clearly fits the scenario of someone flipping the units.

Yes, the units are in good condition according to the OP however he also stated that the potential new landlords wanted to change them from 1 bedroom units to two bedroom units so that they would be more saleable. Again, fits the scenario of someone flipping the units.

“Flipping” is a bit different than fixing up rental houses you’ve inherited to get them ready to sell. But I understand your thinking.

 

[LdiJ]

“Flipping” is a bit different than fixing up rental houses you’ve inherited to get them ready to sell. But I understand your thinking.

And I better understand where you are coming from as well. See, I read the original post to say that the broker they wanted to sell to was the one who wanted to renovate them for resale. You apparently read it as the heirs wanted to fix them up to sell to the broker. If your read is correct and mine is wrong then I agree it's not "flipping".

 

[quincy]

House flippers generally will not rent out the houses they intend to flip. They buy, they fix up, they sell. Renting the house would complicate the sale and delay the flip.

 

[huddy61]

Getting 50k profit each flip must be a dream
What do they make anyway?

 

[LdiJ]

Getting 50k profit each flip must be a dream
What do they make anyway?

It varies greatly. Some do make 50k or more, others sometimes lose their shirts. A lot depends on whether or not they can do a good bit of the work themselves.

 

[quincy]

Getting 50k profit each flip must be a dream
What do they make anyway?

Where does it say there would be a $50,000 profit for each flip?

 

[huddy61]

Where does it say there would be a $50,000 profit for each flip?

Ok, I was going far with the profit part,
"The average return on investment (ROI) for house flipping in 2023 was 27.5%, and the average gross profit was $66,000, according to Attom. "
This is from this link, I don't want to promote it, just citing my sources

With 27.5 that's almost 20k, so it's still a good profit I'd say

 

[quincy]

Ok, I was going far with the profit part,
"The average return on investment (ROI) for house flipping in 2023 was 27.5%, and the average gross profit was $66,000, according to Attom. "
This is from this link, I don't want to promote it, just citing my sources

With 27.5 that's almost 20k, so it's still a good profit I'd say

Thank you for providing your source.

There is no indication that kklblue1’s landlord was in the business of house flipping. On the contrary, house flippers typically do not rent out the houses they purchase. The goal of a house flipper is to have a fast turnover to avoid the extra costs of home ownership. They don’t want to be burdened by tenants and leases.

Likewise, the landlord’s heirs are not flipping the houses they inherited. They are simply fixing them up to sell to split the proceeds. They don’t want to be landlords.