BRRRR Legal Tip: How to Use Your Lease Agreements to Limit the Financial Impact of Unexpected Vacancies

BRRRR Legal Tip: How to Use Your Lease Agreements to Limit the Financial Impact of Unexpected Vacancies

Have you had this issue? 

You rent a property to a tenant on a year lease and in the sixth month they tell you that they have to vacate the property.  This can be an all too frequent occurrence for many landlords.  The impact of these early vacancies can have a material effect on your portfolio.  These early vacancies can result in:

(1) Lost rent
(2) Vacancies
(3) Additional property management fees to fill vacancies 
(4) Repair expesnes required before reletting the property

Why is this important?

Financial impact: 

  • Vacancy: Lost rent during the time to relet.
  • Typical one-month rent payment to property manager to find a new tenant on your behalf.
  • Costs of repairs and other items to prep the property for a new tenant.

What do I recommend?

Watch the video to see the legal language that I include in my lease agreements to require full payment of rent for the full lease term even in the case of early termination.    

Excited about BRRRR investing and want to include this same language in your next lease agreement? Get a free trial and lifetime access to our Deal Analysis and Legal Solution to do more BRRRRs than ever before.  Learn more.

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