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Lease Clauses - http://www.dealmakerscafe.com Forums

Original message

Lynn
Moderator

"Lease Clauses" , Mon 13 Nov 13:56

In Dallas some of us discussed a few modifications that we have made to our “tenant” lease agreements. Following are two clauses that we have recently added to our lease.

I think that the clauses are self-explanatory. I don’t know for a fact whether either one would stand up to a challenge, but they are in all of our new tenant’s leases.

Don’t use these clauses when you are the buyer!

Holdover. If Landlord and Tenant have not reached a written agreement allowing Tenant to hold over at the expiration of the Lease Term, during any such period Tenant shall be a tenant at sufferance at two times the Rent payable hereunder immediately prior to the expiration of the Lease Term.

Insurance. At all times during the Term of this Agreement, Tenant shall maintain insurance on its personal property and general liability coverage in the amount of at least $100,000 and shall provide Landlord with proof of insurance. The Tenant is hereby advised and understands that the personal property of the Tenant is not insured by the Landlord for either damage or loss, and the Landlord assumes no liability for any such loss.

Happy Investing!
Lynn

Replies:

RobertNM

"Re(1):Lease Clauses" , Tue 14 Nov 23:07

Lynn,
The new Holdover clause means that the tenant shall pay double rent starting immediately after the lease expiration date, while in negotiaitions with us the sellers?

Robert in NM

Lynn
Moderator

"Re(2):Lease Clauses" , Wed 15 Nov 08:53

Robert,

Why would you be negotiating "after" the lease expires? Negotiations should take place long before the expiration of the lease.

The purpose of the Holdover clause is to help keep people from staying in your property after the lease and option has expired. It should encourage your tenant to renegotiate with you before such time.

Happy Investing!
Lynn