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Nate B.
  • Investor
  • Williamsburg, VA
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Contract Void? Undermarket buddy hook-up prior to closing on storage

Nate B.
  • Investor
  • Williamsburg, VA
Posted Aug 18 2015, 09:56

Must annual contracts be upheld after transfer of ownership?

Scenario:  Closing on a storage facility.  A few annual leases in there at under market rents.  I was going to leave them in place; however, this weekend the sellers had an existing tenant sign an annual lease at 50% the market rate.  Definitely smells like a buddy hook-up to try to protect him and hose me.

I'm intending to raise rents by 1 October.  I'm now of the opinion to cancel all contracts and start over.  The month-to-month are easy...new rates are X...take it or leave.

May hit up an attorney, but not big enough money to warrant paying for a sit-down with an attorney.  Just annoying.

Seems it's not someone's home, so I can do what I want with the commercial property...tear everything down, if I wanted.

Thoughts??

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