Tenant wants high speed internet

[Mick Harvey]

Have a great national tenant. Pays bills on time and takes care of commercial building. They spoke with AT&T and will cost $50k to run service to building. They are willing to pay it but wants added to rent. If we front the 50k and spread out over 3 yr lease, is it right/fair to charge an interest on top of that? Thanks for all replies

[Justin Fox]

You're giving them a loan.  Simply spreading out the loan principal out over 3 years doesn't make you any money (you'd lose in that scenario).  I would keep doing 1 year leases and structure the 50k as a separate loan.  Amortize it out for 10/15 year with a balloon, whatever, but I would keep it separate.