Tenant who wants to purchase elsewhere - Advice?

[Bart Ford]

I have a small commercial property that I manage mom-and-pop style. At the end of December, when leases came time to renew one tenant said she and her husband were about to make an offer on a property and asked to go month-to-month. I said sure and within a month they had another place under contract. 

Long story short, that contract has fallen through. So I need to get her under a lease again. She is probably going to say that they are still looking and she wants to stay month to month. I'm considering several options:

• Be hard nosed and demand a 1 year lease. 
• Be nice and include a clause in the lease that allows them to terminate the lease contingent on them closing on another commercial property and with no less than 60 days notice. (Perhaps I could include a "lease termination fee" in there)
• Be a bit of an ******* and find another tenant willing to sign a multi-year lease, then kick them out. I probably won't do this, but it is a consideration. 
• If she flat out refuses anything other than month to month I think I may choose to evict. I know that's a pain, but its not like I'd be loosing a long term tenant. It may not necessarily be the most financially prudent thing to do, but I don't want to be pushed around.

What are your thought, BP?

[Lorraine Pennington]

I would raise the rent and go month to month. Request a 60 day notice.  In order to cover your own financial interests ... I would be clear with the tenant that the uncertainty puts you in a bad position. BUT you want to help support them and their business as much as you can and so you will be looking for a long-term tenant to take their place and if so, you will be exercising your own 60 day notice to vacate. So keep the lines of communication open on both sides. 

But I don't see any reason to kick them out. They pay the rent and you don't have another tenant yet. I would move forward in the spirit of "helping" instead of some of the *hole options! Who knows ... you may have business dealings with them again or with someone they know. World is a small place sometimes! Good luck.