Re: Lease offer - Landlord Forum thread 361306

Re: Lease offer by Garry on June 11, 2021 @20:10

Beverly, as Judge Judy would say, You have to have a SIGNED lease by both parties in order for it to be a legally enforceable lease. You apparently don't have that-----there was no "meeting of the minds". And you should NEVER sign a lease longer than 1 year. NO ONE can predict the future, not even by 1 day or 1 week or 1 month------and you want to go for 5 years.

2 things about signing extra long leases---1- It may be illegal in your state to sign a lease longer than 2 years, and 2- If your T breaks the lease mid-term, and you have to go to court, a judge will probably only give you 2-3 months worth of rent, saying that gives you enough time to repair damages, and find a new T. You won't be able to let the property set vacant for 1-3 years (to the end of your lease), and expect the T to come up with $20,000 - $30,000. It simply won't happen.

I'm guessing you are doing the remodeling specifically for this tenant only. NEVER do that. If you are going to remodel, do it to add value or to increase rents, no matter WHO lives there. Sign leases 1 year at a time. If everything is "hunky-dory' between you both each year, your T could possibly stay there for 10 years, while renewing the lease each year.

I used to go with 1 year leases. But about 12 years ago, I went to month to month leases for everyone, no matter what time of year it was. That way, if I get in a "bad" tenant, I can just give them a 30 day notice to move. Currently, I have 5 tenants (out of 19 places) who have been with me for 5-12 years------all on M2M leases from the beginning.

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Re: Lease offer by Carol on June 11, 2021 @20:51	[ Reply ]

I love Judge Judy

Re: Lease offer by Beverly on June 12, 2021 @06:14	[ Reply ]

Hi Garry: Thanks so much for your response!! I was not clear that this is a commercial property, an office condo -- which is why we asked for a longer lease, -- do you still disagree with a longer lease? Most commercial properties ask for a minimum to 3-5 years here where I live, and sometimes it is because some accommodation to the property is done but even without accomdations people usually ask for 3-5 year leases on commercial. In this case it was a lot renovation she was asking for) --- I will definitely take your advice to heart about renovating, I agree and I won't do it.

Re: Lease offer by Garry on June 12, 2021 @07:48	[ Reply ]

This new info of this being a COMMERCIAL setting, TOTALLY changes my answer to you. YES, I agree with you that many commercial leases go 3-5 years in length. And some even go 20-30 years, if it is a fairly large business. My answer to you, was only about residential settings where people are going to LIVE in the space. In your case, If the party only wants a 2 year lease, and you do the reno, either get a LARGE deposit from them, or 20% more in rent each month from them. OR BOTH. But get everything in writing, and SIGNED by BOTH parties before doing anything. Get the deposit at the lease signing, so they cannot back out a week or 2 later. Get it in cash, a money order, or a certified check from a bank. NOT A CHECK! If they don't want to agree to your terms, WALK AWAY. Right now, with the Pandemic starting to go away, there are going to be many smaller businesses wanting to rent spaces like you have, so go ahead and BE PICKY in choosing your new tenants, and your various charges to them.

Re: Lease offer by Beverly on June 12, 2021 @18:47	[ Reply ]

Garry, you are great!!! Husband and I really value what you have been saying --- one more question -- we have had real estate agents helping lease the property --- they have been a grave disappointment -- what websites do you rec for listing the office condos for leasing? Thanks again!!!!

Re: Lease offer

Re: Lease offer by lpadave on June 13, 2021 @17:59	[ Reply ]

to chime in here,.... 1. realtors that work commercial, industrial, retail and office are specialized professionals. The good ones do not also do residential,...even in the smaller markets. not knowing how much footage / doors you have makes it hard to express an opinion. tenant improvements / leasehold improvements are a very negotiable item,....dilligently on both sides. vett these guys CAREFULLY if you're spending any kind of money in excess of what you might normally. cost share up front and / or try for milestone abatements on rent to get the tenant committed for skin to stay longer. adjust your asking rent, up front to accomodate any future abatements. remember that many small new businesses go belly up,....but many also flourish. Think rock bands and computer companies that started out in garages !!!!