What to do when a tenant vacates in the middle of a deal?

[Conrad Martin]

If you had a property locked up that was cash flowing, and the renter leaves after the contract is signed, is that grounds to re-negotiate the offer? Especially if it was negotiated with the turnkey status as a feature of the property? Does this qualify as a change in the condition of the property? Can you leverage the vacancy as a loss in value? 

Asking for a friend ;)

[Kyle J.]

@Conrad Martin  We only know the limited info you've posted, and obviously haven't read the contract, so it's hard to say for sure.  For example, was the paying tenant written into the contract as an actual term/condition of the sale?  Regardless, I'll give you a few thoughts that come to mind.  

If it's a single family property with just the one tenant occupant (which is what it sounds like), then those are typically valued based on recently sold comparable properties (not the income it's generating).  So the loss of the tenant doesn't truly equal a "loss in value".  

Second, since you made this post in the "Real Estate Wholesaling" forum category, I'm going to assume you're wholesaling this deal.  If that's the case, have you asked your end buyer what their preference is?  I know many end buyers (like myself) would actually PREFER to take possession of the property vacant so they can start fresh with their own tenant that THEY selected.  Just a thought.

Ultimately, if it is a problem in this particular case for whatever reason though, you should refer to your contract and see if it's addressed in there.  After all, that's the document that controls the terms/conditions of the sale.  

Good luck.