putting residential leases on a more commercial footing

[Steven Hickox]

Dear Bigger Pockets: We all know that most commercial leases are on a NNN basis. Generally the Landlord remains responsible for only the structural integrity of the building and the major components, like roof and parking lot. The tenant pays the maintenance, insurance, taxes, utilities etc. Its time for all of us in the residential world to start acting more like commercial property owners. Leases should be written where taxes and insurance cost, in particular, are added as a separate charge, to the lease obligation of the tenant. They should be escrowed by the landlord and paid when due. Just like in a commercial setting. If we are going to move beyond accepting lower ROI in residential then this cost shifting is the place to start.