In Plain English Please
Can someone please translate this bit of Lease-ese into regular english for me:
"Subordination of Lease. This lease and Lessee’s leasehold interest hereunder are and shall be subject, subordinate, and inferior to any liens or encumbrances now or hereafter placed on the demised premises by Lessor, all advances made under any such liens or encumbrances, the interest payable on any such liens or encumbrances, and any and all renewals or extensions of such liens or encumbrances."
Whatzatmean?
Thanks for your help.
MC
[addsig]
means the tenants interest is subordinate to the mortgage, among other things.
So if your lender forecloses, the tenant looses his lease rights.
I like the longer lease terms, and will give up some future rent increase to get it because a $50 rent increase is completely erased if the tenant moves out and the place is vacant for 1-2 months. I do NOT clean the carpet yearly (that is the tenants responsibility)...pretty much when they vacate is when I clean it.
finnig,
Thanks for the answer. That is a very valid observation that I had not even considered. One month of vacancy will definitely wipe out potential gains from a rent increase over an 18 month vs 12 month lease. So if I look at it that way, then I should do the longer term to get the security.
Thanks.
JS