Triple net lease on residential property?

[Matt Hogge]

Greetings all.

I am going into a rental contract on a residential property that has four units on it. The house is 100 years old, but in descent shape, and there is a large yard. The property is going to be used for a short term rental.

The owners would like to set up a triple net lease, and wondering everyone's thoughts on using the strategy on a residential property?

As it stands the rent will be similarly priced as housing in the area, and if we priced it per square foot as I have seen other triple net leases drafted, it is overpriced.

Thanks

[John McKee]

Doesn't make sense for a residential tenant to pay NNN. Sounds like the owner is a bit greedy and once his roof replaced by the tenant if something goes wrong or if his taxes go up. Just make sure that everyone is getting market rent to make the deal fair.