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Updated over 1 year ago on . Most recent reply

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114
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Pandu Chimata
36
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114
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Arbitrage lease agreement template

Pandu Chimata
Posted

Hello team, Greetings!

If some one has short term arbitrage rental lease agreement template, can they share it, please? 
I am contemplating on the idea of renting to an investor. 

Most Popular Reply

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274
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347
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Ke Nan Wang
  • Developer
  • St. Augustine, FL
347
Votes |
274
Posts
Ke Nan Wang
  • Developer
  • St. Augustine, FL
Replied

I have three long term rental rented out as an arbitrage. I sent my normal residential lease agreement to my attorney and he modified it to implement the following:

1. This is a commercial lease and it's governed by the non-residential landlord and tenant laws. Subletting is allowed for STR guest only.

2. 3 year lease with a built-in 3.5% increase on rent each year. They would want this anyway to get their furniture expenses back and guarantee a profitable period. 

3. Lessee is responsible for any maintenance less than $500 per occurrence. Lessee is responsible for all STR taxes. Need to obtain appropriate licenses to run the business and obtain the appropriate insurance with $2M liability. I would recommend have the lessee supply their own washer/dryer because STR will take a huge toll on this appliance if they wash sheets onsite.

4. If Lessee default on the lease, they have 24 hour to remove their personal belongings inside the premise or the Lessor will take procession of their belongings (furniture and decors) 

Then the rest is pretty much the same as my residential lease. 

  • Ke Nan Wang
  • Loading replies...