Legal Question in Landlord & Tenant Law in Pennsylvania

Re: Closing On 2 Unit Property With A Tenant

There are somethings that you need to find out: How long has the 'verbal lease' been in existence?

How long have you known about the rent issue?

What expectations do you have based on the sellers words or conduct regarding the tenants willingness to stay if the rent is increased. Was there any understanding in the verbal lease that the landlord could increase the rent upon a certain amount of notice?

There is something called the statute of frauds which very basically states that there are somethings that need to be in writing to be enforceable. However the question becomes whether if you knowingly buy the property with the existing situation do you expose yourself to a defense of detrimental reliance by the tenant. The safest thing to do would be talk to the tenant. I would create a written lease and have the tenant sign with a clause that states at a time certain, making sure to provide adequate notice, there will be a rent increase to the desired rent. I believe this will provide you good will between you and your tenants.