Tenants leaving before closing

2 Replies

I am currently under contract for a building and just recently found out that 2 of the 3 tenants are leaving. One has to be an eviction and the other tenant is not renewing. The leases before bank approval were expiring later in the year. The seller states they will try to find tenants for the two vacant spaces, but what if this does not occur. I want to know what my options are.

Thanks for your help in advance. 

@Joshua Smith-Benson

It's not fully clear in your post, but I assume you're talking about residential property tenants. I personally prefer when properties are unoccupied upon purchase. This gives you an opportunity to renovate, if necessary, and raise rental prices to market rates rather than adopting the standing lease rates. Think of it as a positive! Also, I find it unlikely that the seller will put in the time and effort to find new tenants if you are already under contract.

Thanks Damian. It’s a mixed commercial building and one of the vacancies would be the commercial unit. I agree I don’t foresee the seller finding any tenants, but my concern is based more about on the finance side, the financing was based off the current leases. Could negotiations of purchase price be considered or are we way passed that