As a landlord, What is the way to break the one year lease?

South Bay
1

I have been trying to sell my troubled property, but it did not go when I open housed.

Now, tenants moved in, and have one year lease. I have a buyer who is ready to buy the property and may accept even tenant in house until lease is over.

Buyer is considering to have the tenant until lease is over as he needs design+approval time (appx 5-9 months) to build a new home.

I can re-assign the lease to him, but tenant will come to know he is forced to vacate at the end of lease. Until now, the tenant is extremely happy to stay in the house and paying the rent promptly. He wants to stay as long as possible, he openly told me that he plans to stay for many years.

From my case, I get break-even rent after paying down some mortgage, but do not like to hold any more rental (sell asap and come out of all rentals).

How to handle (if you have faced similar case)? I can talk to them for any possible compromise.

2

In the past, I’ve given tenant a month or so free rent incentive to break one year lease in the middle. YMMV since most of them might have kids school issue and such.

In your case, I don’t think you need to disclose to tenant that new owner is NOT going to renew the lease. In fact, you don’t know whether they are going to do or not. Maybe their permit application take longer that they still want the tenant. You can just say that there is new owner of the property and that’s it. It is still within your right to sell and keeping the lease agreement as it is.

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