Commercial rental property

Anthony@zerboautoworks

Anthony@zerboautoworks

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So I have been in my building since 2011 I know the property has been for sale. Just recently I guy came with a realtor and looked at the property as there are other buildings on my lot.

The guy wants to buy the whole place at $280,000, I heard them talking, he came again today and was taking pictures of the whole place even came inside my shop taking pictures it looks to me like the place is going to be sold for sure. My question is does the landlord have to tell me anything about what is going on?

I have worked so hard building clientele and earning there trust, I mainly do auto repair and detail a couple cars a week, I have built my business from the ground up. I feel like the rug is getting pulled from beneath my feet. I have a sick feeling in my stomach. It sucks really bad because lately, I have been really picking up now its getting foggy and I have no idea what to do.
 
Do you have a lease? If so, the terms of the lease can give you an idea of how much risk (if any) you have should a sale go through.
 
After the first year I became month to month and the pool company behind me has been trying to get a hold of the landlord asking if he could get a 5 year lease going, but no answer on the phone. I'm thinking i am pretty much screwed. The lease was a joke I wish I had it with me so you guys could see. I seen no terms or conditions on it about anything.
 
Anthony@zerboautoworks said:
After the first year I became month to month and the pool company behind me has been trying to get a hold of the landlord asking if he could get a 5 year lease going, but no answer on the phone. I'm thinking i am pretty much screwed. The lease was a joke I wish I had it with me so you guys could see. I seen no terms or conditions on it about anything.
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If your month to month they can kick you out at the end of the month if they want:( if you had a lease they have to wait till lease is up.
 
Yeah that's what I figured. I'm already looking for new place to rent, so I have the upper hand, this time I will make sure I do it right. I don't want to build a good reputation and someone totally screw it up for me. You live you learn
 
good thing .... you make the decision to leave also. That way if you don't like something your not tied in for a long time.
 
Should I feel anger towards the people trying to buy the place? because I do. It hurts fellas, I am very personable with people and built great relationships with my customers. And there isn't much in that area I have to change the total area hopefully they follow which I think many will.
 
When the guy was in there taking pictures why not ask him what his intentions are?
 
Anthony@zerboautoworks said:
Should I feel anger towards the people trying to buy the place?
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That's up to you. It's not going to help anything

If you're good at what you do, your customers will follow wherever you land

scada said:
When the guy was in there taking pictures why not ask him what his intentions are?
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:iagree:


You should've introduced yourself and asked his intentions
 
Just because the property is being sold doesn't mean you will get kicked out (of course, it doesn't mean you won't). If the new owner wants to use it as rental property then he may be glad to have it come with tenants already.
 
+1 I am commercial real estate broker in Atlanta....i would try and find out if the buyer is a user or investor and that should help you determine what will happen with the building. For future leases i would try and incorporate predefined renewal options into a lease. This should state what the term of the renewal options will be upfront. Typically lease language will include a market rate to be determined by a 3rd party or you can state what the rent and escalations will be to avoid having a rental increase if the market was to turn. In the future if a landlord doesnt call you back to extend a lease that should always be a red flag because we always want signed leases vs month to month leasing. Let me know if you need any other help!
 
Thanks for the advice, I will for sure be contacting you when I get a new place to make sure my ducks are all in a row.
 
Instead of stewing about this and getting angry, you need to get on the phone with your landlord right now. Be friendly and say something like, "Hey I noticed some guys looking around at the place, are you selling the property?" "Should I plan on moving?" Be friendly. He's running a business just like you are. You don't know his situation. Maybe he has to sell for financial reasons, health reasons, etc. This would also be a good time to ask if you could go ahead and sign a year lease. I'm not a big fan of signing leases longer than 12 months, but you could if you want to lock in a given price.

I worked in property management for a few years. I worked for a company that owned and managed their properties. Most of the time, when we sold a property, the new owners would keep the old tenants. Since you are month to month, you rent could change, so be aware of that.

Nobody is out to get you. It's purely business. And quite frankly, it's your fault for being on a mo to mo lease.

Have you considered that maybe the building was just being inspected.

Maybe he's refinancing or something. You never know.

I think you need to step up, calmly, and find out what is going on. Be a man and take charge.
 
I leased a commercial building to run a supplement website from for a few years. During that time the owner changed twice. I was never really told ahead of time that there was an ownership change happening. It never effected me though. Try talking to the owner, or try to find out some info about if there is a sale happening. There's way to be crafty and snoop a little if you need to. It could be that the only thing happening is owner change and the new owners want to keep the tenants. Next time you sign a lease though, make sure to have it checked out by either a lawyer or a commercial real estate person you can trust. Not the guy brokering the lease either. It's a small step to make sure you're legally insured against future worries like this.
 
Month to month he can ask you to leave. I would ask him what he plans on doing with the place. Sometimes people want to pick up extra cash from rent. He may want to renovate and flip the place. If that is the case expect your rent to go up. I would check with your local municipality and confirm how long you legally have to pack up and move and what your rights are. There are laws that protect you and your business. Make sure you do this before you speak to the new owner. Then get everything in writing as far as how much time you have to move out or stay and continue to rent pending his intentions. He can't just say be out in a week especially if you are a good tenant that would just make him and a** and you would not want to continue any form of business with him.
Don't worry if your moving a reasonable distance away your customers will follow.
I know in NJ they have "squatters" rights. It's crazy I don't get it. A good friend of mine had to go to court to get her crazy ex ordered to leave even though he did not have a job or contribute any finances towards rent or utilities. She had everything documented and still had to go to court.
Now this is far from your situation but you need to know what your rights are and then you can figure out how to proceed. I would suggest if you have to move or stay with the new owner you sign an extended lease. My brother-in-law did that. That way the owner just can't turnaround and say we are not renewing your lease at the end of the year. He was there under a one year lease then worked out a 10 year lease with the owner that gives him an out if he decides to move before 10 years are up. He will loose a little money if he does leave but it's worth the security of having a business in a prime location.
 
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