Bankruptcy And L/O
My tenant wants to L/O a property of mine. They have been there a year and never late on rent. We are discussing a L/O and during this conversation she disclosed they may file bankruptcy to discharge some debts. We have decided to just remain status quo and continue the rental contract. Just out of curiosity...IF I didn't know this aAND a L/O'd the property to them...where would I stand? 
Quote:
On 2003-10-01 18:44, BethE wrote:
My tenant wants to L/O a property of mine. They have been there a year and never late on rent. We are discussing a L/O and during this conversation she disclosed they may file bankruptcy to discharge some debts. We have decided to just remain status quo and continue the rental contract. Just out of curiosity...IF I didn't know this aAND a L/O'd the property to them...where would I stand? <IMG SRC="images/forum/smilies/icon_eek.gif">
It all depends on how you feel about the bankrupcy and why they are doing it. I would probably do it if they have never been late for a year. How much option money do they have to give, if it is a good amount thats great if they don't exercise you keep it. You can also get rid of a lot of day to day maintenance. You could give them a 2-3 year l/o with a yearly renewal after that and get more option money until they can get a loan. If they don't exercise you get their option money, have your property back, didn't have to do any maintenance, got your mortgage paid down and can do it all over again with someone else if you want. Thats just my opinion and I don't have all the details. Good Luck.