Advice on existing lease when purchasing

[Braden Hobbs]

Looking at a deal with 2 units. One lease ends in summer, and the other ends in November. Our strategy with this property will be to use as college housing so we'd like both leases to end in the summer every year.

Do we have any options to end the current tenant's lease early in the summer?

[Mike Cumbie]

Hi @Braden Hobbs,

Congratulations,

After you own it you could work with the tenants to see if they want to sign a 6 month with you or something.

"Hi tenant, I know you have an existing lease which is completely valid and I will happily stand behind. I do have a standard lease I like to use to keep things consistent across my properties. If you want to go over to mine since I know it's a hassle I'll offer you a 6 month at $25 less a month or an 18 month for $40 less".

or

"Hi tenant, I know you have an existing lease which is completely valid and I will happily stand behind. I do have a standard lease I like to use to keep things consistent across my properties. If you want to go over to mine since it does include the Wi-Fi added in I would be happy to put it in for the same price for the next 6 months"

So yeah it does take a "buyout" but there are ways to get them to agree without buying out the whole lease. Just give them something so it is a win/win. If you are already putting in Wi-Fi or putting in a putting green etc, then let them use it at the same price to terminate on your terms.