Hi,
I have a tenant who is in financial difficulty/verge of folding up his business, he has approx 6 months left of his first term (we signed a 4x5) with an option for 5 years to renew. He wants to transfer his lease to his business partner who wants to buy him out/continue operations.
I am reluctant/not willing to do this. I am happy to transfer the balance of the 6 months left on the contract to his business partner just to give me enough time to advertise to lease it out and happy to do month by month after that if I don't get a party to rent in time.
I am not comfortable to transfer his business partner and allow him to execute the 5 year option as we don't know him enough and therefore can't trust. The tenant is now 20 days in arrears and has therefore breached our clause in the retail act, which allows me to terminate the existing contract.
I really don't think their business model is viable in an environment like this and frankly I have seen the bloke trying to chop and change various times during his 4 year tenure that I frankly would feel relieved getting rid of him now and perhaps also put him out of his financial misery!
Is this possible?
Thanks.
I have a tenant who is in financial difficulty/verge of folding up his business, he has approx 6 months left of his first term (we signed a 4x5) with an option for 5 years to renew. He wants to transfer his lease to his business partner who wants to buy him out/continue operations.
I am reluctant/not willing to do this. I am happy to transfer the balance of the 6 months left on the contract to his business partner just to give me enough time to advertise to lease it out and happy to do month by month after that if I don't get a party to rent in time.
I am not comfortable to transfer his business partner and allow him to execute the 5 year option as we don't know him enough and therefore can't trust. The tenant is now 20 days in arrears and has therefore breached our clause in the retail act, which allows me to terminate the existing contract.
I really don't think their business model is viable in an environment like this and frankly I have seen the bloke trying to chop and change various times during his 4 year tenure that I frankly would feel relieved getting rid of him now and perhaps also put him out of his financial misery!
Is this possible?
Thanks.