Can a lease rider change terms if the lease gets transferred?
Hi all,
I'm in the process of drafting a new lease for a tenant whose lease is up for renewal.
This tenant is a bit of a special case: Basically, a personal friend with a really good rental deal.
He is starting to look into selling his business, and it's not clear when that will happen. I want him to keep paying the "friends and family" discounted rent, but if he sells the business and the new owner takes over, I want the new owner to be subject to the "regular" (non-discounted) rate.
The "discount" for the friend is basically, a reasonable base rate, but while we take care of the NNN operational costs (so, no additional rent for tax/insurance/operations).
The approach I want to take with the lease rider is to say something like:
"While <business> is owned by <friend>, 'friends and family' package applies. If <business> is taken over by any other owning entity, the 'friends and family' package no longer applies"
(and then describe the terms of the friends and family package).
That way, I can comfortably set up a longer term lease, without getting stuck with the lower rental income when he does sell and transfer his business to a new owner.
Is this doable? If not, I'd love to hear what advice those with more experience have to offer about this kind of thing.
Thanks!