A new law was just passed by Congress and signed by President Obama that will protect Rental Tenants from being evicted when the home they are renting forecloses. With so many homes in the Las Vegas Real Estate Market foreclosing, it’s difficult to know if the home you are renting could be next. Many times, renters don’t even know the home foreclosed until they get a knock on the door from the Constable informing them they have to vacate the property. This new law, “Helping Families Save Their Homes Act of 2009” will give renters an ample amount of time to get their affairs in order and locate a new home for their family.
The “Helping Families Save Their Homes Act of 2009? became law on May 20, 2009. It included provisions to protect tenants from eviction as a consequence of a foreclosure affecting the property being rented. The new law requires tenants be given 90-days notice prior to having to vacate, and allows them to stay through the remainder of their lease, if the home will continue to be a rental property. The protections of this law apply only to “bona fide” tenants – who have a written contract, the lease was the result of an arms-length transaction, and the rent is not substantially less than the fair market rent for the property. Under any conditions, tenants may still be evicted if they violate the lease terms. These provisions expire on December 31, 2012.
This law will also affect Las Vegas Property Managers representing landlords with properties that foreclose with a tenant. Even though the tenant will be able to stay for an additional 90 days, the Property Manager is no longer representing the property and will not collect further rents. The property management agreement is with the previous owner, therefore when their rights as the owner of the property terminates, so does the property management agreement. If you are a Las Vegas Property Manager, you will need to find out who the new owner of the property is and pass that information on to the existing tenant.
If you are looking to rent a home in Las Vegas, feel free to give us a call at 702.376.0088 or complete the form to the right for free representation.