Listing parking spot/Renter wants to sign another year lease

Listing parking spot/Renter wants to sign another year lease

Investor · Dallas, TX · Member since 2016 · 46 posts · 6 votes

I'm about to list my Chicago parking spot for sale.  I've had a renter in the spot for a year and his lease ends 10/31.  I've told him that I'm listing the spot and he would like to sign another year lease.  I see advertisements for parking spaces for sale in Chicago regularly that say something about the fact that it currently has a renter with a lease and the buyer would have to honor that lease until it expires.  It's very possible that it would be bought by another investor, so I don't mind doing this for my renter.   Especially since I don't expect it to sell quickly.  Honestly, I wouldn't be surprised if it was still on the market a year from now.  What language should I use in the new lease to indicate to the renter that I have promised him that I will include his lease in any purchase agreement and advertisements indicating the buyer must honor the lease?

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Patrick LiskaPro Member
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
10y

Not a Lawyer, but i think you just did it, just put in the sales agreement that the spot already has a renter and that they are to agree, and sign the agreement, that if they buy it that they will honor the current renters lease as a contingency for buying it, and provide them with the rental agreement.

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  • Patrick LiskaPro Member
    Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
    10y

    Not a Lawyer, but i think you just did it, just put in the sales agreement that the spot already has a renter and that they are to agree, and sign the agreement, that if they buy it that they will honor the current renters lease as a contingency for buying it, and provide them with the rental agreement.

  • Real Estate Investor · Chicago, IL · Member since 2014 · 286 posts · 159 votes
    10y

    I don't even think you need to do that. The lease is a legal document that needs to be honored by the buyer. You don't need to put in the lease that he parks in the yellow lines or he pays his HOA fee or you won't sell. You don't need to put in contingency that he follows the law. Just make sure he is aware of the lease and all other pertinent matters. Because, if he decides to kick out your renter after he buys that is between those two anyway.

  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    10y

    Hi @Douglas T.,

    Out of morbid curiosity just how much does a parking spot go for in Chicago?

  • Investor · Dallas, TX · Member since 2016 · 46 posts · 6 votes
    10y
    Originally posted by @Mike Cumbie:

    Hi @Douglas T.,

    Out of morbid curiosity just how much does a parking spot go for in Chicago?

     Depending on the neighborhood, parking in Chicago goes for anywhere between around $15K - $50K.  However, downtown Chicago parking spots can easily go for $80K or more.

  • Real Estate Investor · Chicago, IL · Member since 2014 · 286 posts · 159 votes
    10y

    But, they are difficult to sell because many condos come with a space and rental spaces are ubiquitous. so just somebody wanting to buy a space isn't on every street corner. 

  • Investor · NW Indiana · Member since 2012 · 833 posts · 197 votes
    10y

    more curiosity, how much can they rent for?

  • Investor · Dallas, TX · Member since 2016 · 46 posts · 6 votes
    10y
    Originally posted by @Carolina E.:

    more curiosity, how much can they rent for?

     Outside of downtown, they'll rent for anywhere between about $100/mo - $350/mo.  I'm not sure what they rent for downtown.

  • Ronan M.Pro Member
    Rental Property Investor · Chicago, IL · Member since 2015 · 352 posts · 281 votes
    10y

    Is this a condo building ?

    Is the parking spot officially "assigned" to the unit you are renting to him. If so..and you sell your parking spot..are you crushing the value of your condo that could possibly be sold down the line with no parking  ?

    Just a thought.  

  • Investor · Dallas, TX · Member since 2016 · 46 posts · 6 votes
    10y
    Originally posted by @Ronan M.:

    Is this a condo building ?

    Is the parking spot officially "assigned" to the unit you are renting to him. If so..and you sell your parking spot..are you crushing the value of your condo that could possibly be sold down the line with no parking  ?

    Just a thought.  

     No, this parking space was bought on it's own as an investment several years ago separate from any residential unit in the building.

  • Property Manager · St. Joseph, MN · Member since 2015 · 7 posts · 0 votes
    10y

    Oh my. I am absolutely floored by owning/buying/selling a parking spot. WHAT!

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