Do they do NNN leases for residential?

5 Replies

I know they do this for commercial. Is there any way to have tenants paying maintenance, etc.?

Other than lease options?

Besides, would tenants pay for maintenance? I wouldn't want that decision in their hands. 

Example: Tenant A is moving out in a couple months and unfortunately rain water has started to pour in. But, what do they care, they'll leave soon. Let it rain, let it rain. They move out, and you have 100s or thousands of dollars in damage that could have been mitigated had you known early on. 

@Patrick Philip Not so fast everyone.... Back around 20 years ago Carleton Sheets (wow remember that no money down guy) advocated putting a clause in your lease that the tenant was responsible for the first $25 of every maintenance call.  And if the call was due to damage caused by tenant then then entire bill was the tenants.  His claim was it would cut down on unnecessary calls and calls that were the fault of the tenant.

There are also (or were more a few years ago) corporate lease back situations where the corporation leasing for transient employees (think travel nurses or visits to Stamford for GE) guaranteed our leases and paid damages on going.

We tried this and it actually did work - in SF homes.  In our multi's not so much.

Plusses - fewer calls.  Some cash to pay repairs.

Minuses - arguments over fault, collectability, and problems that should be called on not getting fixed.

You can think about it.  My fear was always the pipe leak they didn't want to pay $25 for that turns into a new flooring situation.

NNN residential.......If only dreams came true:)

This would basically be an owner financed situation, except you wouldn’t be getting a down payment.

The reason lease purchases work is because the tenant has a different state of mind. Their incentive is to buy and own the place.  As such, repairs and maintenance is in their best interest.  You can always have an option to buy agreement that is favorable to you i.e. buy at market price, first refusal, etc.  Also, if you have a rental agreement where the tenant makes the repairs, this could be interpreted as tenant having equitable interest. This means no more eviction but rather foreclosure court.  

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