- Joined
- Feb 9, 2009
- Messages
- 83
I have a triplex in New Brunswick that was set up as a rent-to-own deal almost three years ago. The tenant-buyer is now in a bit of financial trouble and is looking to me for guidance as to where he should turn.
The tenant-buyer has been collecting the rents from 2 of the 3 units, and living in the third. But over the past winter one of the tenants stopped paying rent (and he says he couldn't kick them out because "it was winter") and the power bills were extremely high. The tenant in the second unit also just vacated. So now he's behind in paying rent to us, and also has a big utility bill to pay.
Compounding things is the fact that the tenant-buyer just found out from the bank that he won't be able to get financing to buy the property from us this year. This is the third year of the deal, so he was supposed to buy us out this year.
He would like to extend the contract for another three years, but he's leaving it up to us and would understand if we just want to cancel the contract (which, judging by the contents of the contract, we're allowed to do, because he's been late with rent payment on multiple occasions).
We're wondering what to do. If we cancel his contract we'll obviously get to keep the property (and his equity), but then we'll have to find a property manager (we're living overseas), find new tenants, and absorb the cost of his power bills and lost rent.
Any advice?
The tenant-buyer has been collecting the rents from 2 of the 3 units, and living in the third. But over the past winter one of the tenants stopped paying rent (and he says he couldn't kick them out because "it was winter") and the power bills were extremely high. The tenant in the second unit also just vacated. So now he's behind in paying rent to us, and also has a big utility bill to pay.
Compounding things is the fact that the tenant-buyer just found out from the bank that he won't be able to get financing to buy the property from us this year. This is the third year of the deal, so he was supposed to buy us out this year.
He would like to extend the contract for another three years, but he's leaving it up to us and would understand if we just want to cancel the contract (which, judging by the contents of the contract, we're allowed to do, because he's been late with rent payment on multiple occasions).
We're wondering what to do. If we cancel his contract we'll obviously get to keep the property (and his equity), but then we'll have to find a property manager (we're living overseas), find new tenants, and absorb the cost of his power bills and lost rent.
Any advice?