Sandwich wants an extension..

[Learning and Burning 11]

I have a Sandwich that is due in August. My terms with the owner are due in august 2016. My t/b has called and said she would like an extension for one more year. My terms with the t/b expire this year. This t/b has paid like clockwork and no issues.

So, would you extend the terms,? Which I am in favor of vs finding another t/b. And what paperwork do I use to extend one year and cover my butt?

 

Learning and burning

[MichaelC 160]

I would definitely extend a t/b who is as reliable as you described above and, in fact, I have done just that. You can take several paths with this, but I choose the path of least resistance. I typically extend for six months, unless there is a pressing reason why the t/b needs another year. Rent credits cease after the original term. So now we have a t/b no longer receiving rent credits which should spark them to get financed. Speaking of financing, I inquire where they are with the mortgage process. Are they serious, or just not wanting to pack boxes and move?

To make this legal, a straightforward addendum will do, spelling out the terms of the extension.

[Learning and Burning 11]

Thanks, again great advice I feel the same way about it. This one so far has been working as planned good house good tenants. She wants to do some repair on the wooden fence. What are your thoughts on that part?

[MichaelC 160]

I think it is risky for the t/b to make repairs since they aren't on title and if for some unexpected reason they don't exercise their option they've lost their money. But if they want to take that chance, get specifics in writing: what's to be done, by who, when, etc.