Landlord Question and Answer Forum

"Buying Out" Tenants Lease

Does anyone have any suggestions on the best way to go about buying out a tenants lease? I have been a landlord for a little more than a year and it is not for me. I would like to sell the property but am not having any luck selling as a rental property. I have interested buyers that want to move in. But my current tenants have a signed lease through 2010. I have proposed offering $2K to buy out the lease and change from a one year least to a month-to-month. Any comments/suggestions?

What was their response to the offer?

Posted by Stan M, CA on Tuesday, January 26, 2010

Just made the offer last night. I actually offered $500 up front to change the lease to a month-to-month, then $1000 once have vacated property. The tenant was a little shocked at the prospects of having to move; which is understandable. She is thinking about it.

Posted by Aaron J, NY on Wednesday, January 27, 2010

Aaron...read "Looking for Rental Prop. Buyer" below. Consider allowing her to stay until property is sold. The key here is that she receives the $$$ if she meets ALL the terms of the lease. In her favor, she gets help in moving cost and 2 month to look for a place. Every month that the property is vacant, that's a loss to you. How long can you continue to support that property without income..... 4, 6 or 8 months? Work the numbers with/without tenant. As you mentioned earlier, you only have "interested" parties. How many times have you been interested in something and never purchased it. Keep us posted.

Posted by Stan M, CA on Wednesday, January 27, 2010