Hi Everyone, I have a question. I am supposed to close on a 2 family apartment next week and just learned the owner wants a use and occupancy agreement up to 6 months. I originally agreed to 3 days and that is the in contract. What are your thoughts on a 6 month use and occupancy agreement vs a 6 month lease? How should I decide what to do? On the one hand its immediate income but if the seller moves out after 3 months then I could be looking for a renter in December/January which is hard. Would love your thoughts! Thanks
Hello Rene! I live in Dallas county Texas and have rarely experienced delay because of weather. I do not know where you live but you can redo a Lease at the request of the tenant, agent, or property manager and you will be better off financially. Check on the local law to see if there are any laws or restrictions that will effect you. Each state has different laws and restrictions. Some cities do as well. If you have an option I would tend to do a lease because it is more used which any expected buyer would want to review what governs each unit before they would purchase it, usually, and usually it would be good to approve whatever your need is.
Vacancies always tend to hurt on fewer unit complexes. I have never even heard of anything but a lease. If the occupant wants to stay make sure they understand your requirements and how a lease protects you and restricts their use. This is a two way street. Otherwise enforce the current document. Good luck to you!
I would accept it and have the 6 month paid up front that is non refundable to be included on the closing as a discount or credit to you .
Collect the rent at closing as a credit to you as the buyer. Do a Seller Post Occupancy Agreement or execute a lease so it's clear that the terms and conditions of extending that time to him will not allow for a rebate of rent should he leave earlier. You'll also want to make sure that the other tenant(s) understand that you are the owner - so that your new tenant (the seller) doesn't attempt to control the property or make decisions that will no longer be his to make. Congrats on your acquisition.
Thanks everyone! I love the idea of taking all of the rent upfront at closing as a credit. Brilliant!