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Updated 2 days ago on . Most recent reply

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Carol Burns
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Can a landlord break a lease if they need to sell

Carol Burns
Posted

Hi all, looking at signing a 2 year lease with a tenant.  My question is, if we later decided we must sell and do something different with the equity, can a landlord break a lease in order to sell the property?  I'm in South Carolina TIA

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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
Replied

I charge the same for MTM as a 2 year lease. About $100-$200 more than a 1 year lease. (5-10%). The tenant is paying more for locked in housing expenses or the option to move at any time with a 30 day notice. I’m being compensated for being locked in to a deal for 2 years or not having any idea of when the property might go vacant. 

I truly used to be so naive as to offer discounts for 2 year leases because I wanted the reliability. Not figuring out that not only was I losing money the first year. I was losing even more money the second year when I could increase rents. So now I add 50-75% of my year 2 rent increase to 2 year leases. This locks in the 2nd year rent increase and actually pays off if they move early or quit paying rent. 

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