QUESTION:
What if the T/B that I assigned the lease to wants to renew the lease option after the original term runs out, how would I go about doing this? Should I charge the T/B another option consideration?
ANSWER:
On an assignment it would be between the seller and tenant/buyer. But if you’re the person they’re leasing from, it would be completely up to you and you’d have three choices.
One, you could ask for more money down, two you could ask for more rent and three, you could raise the sale price.
Typically I would simply raise the sale and rent price and only extend the lease by 90 to 120 increments.
Hope that helps,
Adam
RESPONSE:
Ok. Thanks. I’m about to fax my contracts over to my attorney.