What if My Tenant Leaves?

This is every landlord’s nightmare and, sadly, sometimes it comes to life. But what’s important is to understand that not everyone’s situation is the same. Because of this, it is important to break down your individual leaseback situation. In short, if your tenant leaves, there are two main options: 1. To find another tenant or 2. To manage your leaseback by yourself. So how do you know which option is better for you?

 

There are three main criteria you should take into consideration before you choose whether you want to find a new tenant or manage the property on your own. These are outlined below:

 

1. Taxes

For taxes, it is important to consider your VAT refund. Will you have to pay part of the refund for no longer leasing?

 

2. Laws of the Building  

This aspect is most of the time forgotten. Questions to ask yourself are: is there a statute my property adheres to within the building? Are there fees I have to pay if I change my rental agreement?

 

3. Current Rent

Did your tenant leave because rent was too high or because the term ended? This is important in discerning as it helps decipher the market value of your asset. If they left because of the rental price, expect a lower rent for your future tenant.