Sweet Heart Leases

[Adrian Phillips]

Hi all, 

Wanting some advise on a situation my company is currently dealing with.
We purchased a 70+ property portfolio in Houston in the year 2022. After closing, we discovered that for about 5-6 of the properties, tenants had been granted "sweetheart leases", well below market rates, extending through 2027 and beyond. Some leases even reaching the year 2097. These terms were provided by the seller's daughter who managed the properties and were not disclosed to us during the transaction.

The legal expertise we've received up until this point has not been helpful. Looking for a lawyer in the Houston area that could possibly help assist with an eviction or proving this lease is invalid

Thanks

[Michael Coco]

I'm not licensed in Texas, but it sounds like your recourse is with the seller and not the tenants. If the prior owner made a lease with the tenants and you purchased the property (and the lease), I doubt you'll have much luck evicting them just because you don't like the rent amount or lease term.