Tenant wants out of lease to invest in RE

[Randon B.]

One of my inherited tenants that has always resented me because of my age and me being his land lord wants to know if I would work with him so he could buy a duplex around the corner.

He is 1 month in to his year lease, and the original owners of the duplex contacted him to see if he wanted to buy another one of theirs. I personally would rather have him out so I can get into his side and start renovating his side. 

The problem is I'm not ready with the one side yet, and I don't want the holding costs it would take to have a vacant duplex for the month or two it would take to get the both of the side ready.

I would like to work with him. I'm thinking of offering him to change his lease to a 6 month term and withholding his security deposit.

What would you guys do in this situation? 

Thanks

[Marcia Maynard]

I would be flexible and help him out. I would let him out of the lease without penalty. It is likely to take a month or two for him to qualify and complete the process of buying the other property. Then you would be able to renovate his unit sooner and get it ready for the next tenant (or for the flip if that is what you are after.) Win-Win. Unless he told you he resents you because of your age and your ability to buy real estate, I would not assume that is the case. It may just be that he has his own dreams that he didn't think he could realize until now. Help him to make it happen. Good deeds come back to you. It will also help your current relationship.