Buying A Fully Leased Building Should I Get The Escrow
im picking up a office building that is fully leased at the moment. what i am wondering is do i have the right to ask for all of the tenant last month and security deposits?
it makes sence to me because when those tenants leave they will get a rent for free and ill have to pay them their security deposit.
if i am entitled to it were should this be stated in the contract. ive seen plenty of commercial contract and nothing is spoken about this.
thank you for the help
You are most definitely entitled to the deposits. Not only the tenants, but other contracts as well. You should have a secondary contract drawn up with a list of all assets, deposits rental, Deposits Utility, Maintenance contracts,etc and have them attached to the business. Make sure that you want to take over the contracts as well, Landscaping, window washing, maintenance etc. Also dont forget that if you close in the middle of the month you are due the daily rate of tenants payments as well.
Good Luck,
Kyle
thank you for the info i thought so but i just wanted to make sure. i know theres always someone out here that has the answers.
thanks agian
There is usually an addendum to contract that addresses transfer of leases and deposits.
Hi!!
I am kind of in the same situation myself. I am looking at a 6 unit commercial building tonight, and 4 of the 6 are leased out.
In the event I acquire this property, and after the tenants leases expire, at what point should I increase rents. When or how will I know the time is right to do this?
Thanks!!
Chris G[ Edited by sharpREI_PA on Date 03/22/2004 ]