Crown Point, IN · Member since 2017 · 10 posts · 2 votes
Hi -
I'm looking to purchase our second vacation rental property. Family that owns it has been renting it out, but also using it 5-7 weeks a year for themselves. They are selling because don't want to continue self-managing it and their kids are growing up so they don't use it as often.
I've been thinking making a couple offers, with one including "2 weeks free rental per year for the next 5 years" or something like, thinking that it might be meaningful to them to be able to continue to enjoy the place without the hassles of owning it.
If we did that then we of course have to account for what happens if we sell the place or are living in it, in which case we would just "refund" them the weeks' rent.
Forgetting about making the pricing rationale and whether they would or wouldn't want it, has anyone figured out the legalities or contract language for doing something like this?
I'm trying to find something to offer to set us apart from just paying them more cash.
Real Estate Investor · Ellington, CT · Member since 2009 · 18 posts · 22 votes
5y
Hi Carl, I think your idea is a good one. It sounds like you might be offering them what they really wanted in the first place. The thing to do with the two weeks might be to just plan on not selling this productive assest for 5 years. If you end up living there then just plan on staying somewhere else for the two weeks, maybe take a vaction, stay with family and friends, etc. So you would not have to write it into the purchase and sales contract, you could create a separate agreement that descibes the two week provision for 5 years for the seller and include it when you present the purchase offer.
Crown Point, IN · Member since 2017 · 10 posts · 2 votes
5y
Thanks - I think that's a good idea. Just have my lawyer create a separate agreement we sign at closing. That way we don't have to over-complicate the offer paperwork.