Lenders may request that property owners of rental properties include a clause in their lease agreement that gives the lender the right to terminate the lease and evict the tenant, even if the tenant has fulfilled all of its responsibilities under the lease, in the case that the owner of the property defaults on her mortgage. This part of the lease agreement is more commonly referred to as a:

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A subordination clause in a lease agreement allows the lender's mortgage to take precedence over the lease. If the property owner defaults on the mortgage, the lender can terminate the lease and evict the tenants, regardless of the tenants' compliance with the lease terms. This ensures the lender can secure the property unencumbered by existing leases.

Lenders May Request That Property Owners of Rental Properties Include