Rental Question
I am getting ready to close on a new house and my current is going to be a rental. My question is the my current or the soon to be rental has three lots. The first has the house on it, the second has a old detached garage and the third is just bare.
I want to rent the house to a tenent but I want to keep the second and third out of the agreement. Because I want to keep the garage for storage and lawn mower etc. The third lot I want to in the near future start thinking about buildning another single family house.
Is this possible? How do I put that the house lot is the only one on the lease?
Just make sure it is written in the lease and then that the renter understands it. if they have seperate tax parcel numbers then put the tax parcel number you are renting in the lease by the property address. you can really write almost anything in a lease so i would maybe even put that renter understands lot xxx and lot xxx are not part of the rental agreement. as long as the one house you are renting is of fair market rent then the renter should have no problem with it. I wouldnt.
Two things that will help here.
1. Put a fence up. It makes it easier for the tenant to know the boundaries.
2. Until you decide to partition the land there is little issue. It is mostly about use and this can be detailed in the agreement. That has been noted.
When you do get to the stage of trying to use the third lot to build on you need permission to build. You also likely will need to partition the lot if you want to maximize the value. At that time you might need to agree access with the tenant if there is to be a shared drive. You are the landlord and can pretty much get this sorted but if you change their deal then you need to somehow acknowledge the change so they are notified (and maybe adjust the rent if there is a material shift in the value to the tenant).
John
[addsig]
John,
You are very knowledgable. Keep posting.
When I offer a rental and I wish to remove from the property two adjacent lots, legal lots or just part of the same parcel. I really spell it out in the lease just as John said, but I also in my initial verbal presentation make very sure that the new tenant is aware of what is going on and that he is in full agreement. A simple extra paragraph. Merely stating that the Lessor and Lessee mutualy agree that only the house and one lot are being leased. The other parcels, (describe them if you have a legal on them) are being held for the future use of the owner of the property. Everybody signs, kiss and thats it. It just might prevent an argument in the future.
Cheers Lucius