Hi all,
I am wondering has anyone had any experience with commercial tenants?
I have come across a property for sale that is perfect for what we need (location, cost and space), its not for us to rent out but to occupy.
But after inquiring we have found it is going to auction and that there are tenants who are not paying rent and if we purchased then its up to us to get rid of them.
According to the estate agent they have been there since end 2006 with reviews every 5 years and 21 year lease...but again not paying rent now (Squatters rights?).
Should i just avoid at all cost or if we purchase with the intention of moving in would that make it easier to get rid of them?
Thanks!
You'll get great general advice here, and @galway_blow_in has experience in this area.
However, you really need a copy of the lease agreement with the tenants, and legal advice specific to the lease / circumstances.
You've given no indication of the value of property / rent.
There is generally a covenant in the lease for non payment of rent, which makes it very easy to terminate the lease.
However, the tenant might be chancing their arm - if the sale is a bank repossession, they might know it doesn't impact the landlord whether they pay or not. If they start paying rent once you buy, how will you evict them? Again, there might be clauses in the lease, but without a breach of lease covenants it is extremely difficult to evict a tenant before the expiry of a lease.
It all depends.excellent point red onion , if the lease only commenced in 2006 , it has a long way to go , was just wondering if the fact they were not paying and thus in breach of lease conditions , would this render their lease null and void in sofar as seeing out the term ?
Thanks Red!
I am trying to get in touch with a solicitor to get a proper eye on it but from having a look at the legal documents, as its going for auction now and they are all online. It seems as those the tenants letting are actually the mortgage holders..well former as it went into receivership in July of this year if i am reading it correctly. So they may be hard pressed to leave and may make things more awkward, again this is to my untrained eye so i will let the professionals check it out but thanks for the advice as its given me a direction to go in and know what to ask.
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