Correct Structure for Lease Optioning Mulitple units

General Real Estate Investing
1

Hello to everyone reviewing this post, are there any landlors/investors that have any experience with lease optioning homes that have two to three units or two-three family households?
In regards to

How do you structure the leases in regards to their respective dates of termination?

example-Tenant A ( who has been granted the option to purchase) lease ends on Feb 5, Tenant B (is just a regular renter) lease ends on Feb 12.

Do you enform Tenant B that you offered Tenant A the lease option with option to purchase?

Do you structure your lease with option to purchase contract with a stipulation that the person must opt to purchase one month before their lease expires?

In addition, let’s suppose Tenant A is encountering some issues in regards to closing on the house or wants more time to consider, would you offer the tenant,
a) month to month lease until he exercises his right to purchase.
b) should the month to month lease contain a substantial increase in rent to offset any losses by tying up the property with the tenant?

2

I am buy no means giving legal advice here, but contracts and rental/lease agreements, I think, will run with the property if sold.

Does tenant A have an option on the building or just thier unit?
When does it expire?

If it is the building try to get them to sign a mutual release before you option-or-if its just their unit and you want to sell to them, leave it be.

If you option the building and tenant A is mo/mo you can change the lease any way you want, legally, usually with a 30 notice.

3

Hello Critical-mass, thanks for answering my questions. In the scenario, the tenant/potential buyer would have an option to purchase the home/building and his lease would be for the duration of one year lease. If it begins on Feb 5, 2005, it would terminate Feb 5, 2006.