Updated over 5 years ago on . Most recent reply
Transfer Clause for Corporate Relocation Tenant
I am in the process of screening a tenant that is relocating from Germany. Their company is going to pay their living expenses while they are in the US. We were getting ready to sign a 1-year lease but my realtor informed me that they are signed to a 3-year contract with their company so I offered them a 2-year lease. The prospective tenants would like to do the 2-year lease option but their company requires them to have a transfer clause addendum on the lease, which allows them to terminate the lease with 60-days notice if the employer transfers the tenant from the local worksite. I feel uncomfortable with this clause as this basically allows them out of the lease at no cost. I will then be stuck with the turnover expenses and trying to find another tenant. I told my realtor that I would sign if we also include an early termination fee of 2 months rent. I am waiting to hear back from the applicant and their company.
Has anyone dealt with something like this? Can you share your experiences?