NNN lease on small farm property - Posted by Bill/VA
Posted by Bill/VA on August 07, 2008 at 11:44:49:
Found a vacation property that I plan to lease and live in (the only way I could afford a place on the water) on weekends and during summer. But, I need to negotiate a reduced monthly lease payment. Thought I could do that by making it as easy as possible for the owner to lease it to me. He’s not looking to make a lot of money on it (doesn’t need to), he wants someone there to take care of this place that has been in his family for years and holds special memories for him. It hasn’t been lived in since 2000, and I was going to trade my labor to clean (very dirty) and paint interior, pay for inspections, pack their personal items (this should cost about $4-$5K). I also want to lease it for a minimum 10 years with option to renew for another 10 years at the end of each 10 year term (he doesn’t use it and will probably donate it to a charity/foundation when he passes). Like a triple net lease, I’ll offer to pay taxes, insurance, and maintenance except roof and structure/infrastructure repairs and he just gets a rent check monthly. With approximately 9 acres now planted in soy beans, I was hoping to offset some of the rent costs by growing/selling veggies and herbs, and occassionally renting the house out to others a week at a time during vacation season. It has been available for lease for a year, with a couple interested parties, but he is very particular about who it will be leased to and how they will use the property. I’ve had a long conversation with the realitor about my plans for the place and she thinks the owner will think he has died and gone to heaven. I had a 90 minute phone call with the owner to start building a relationship with him, explain what my plans are, and assure him that I’ll take excellent care of his property, but we’ve not done negotiations on rent yet.
My credit score is in 810+, steady/secure income, and would make a great tenant. How do I use that to my advantage?
Has anyone used triple net lease on residential/farm property?
Is there a better/simpler way to accomplish this leasing?
Can the owner continue to take tax deductions for taxes and insurance? and could he also deduct my maintenance costs?
What do I need to watch out for?
Realitor isn’t familiar with triple net leases and only has normal residential lease forms. Can that be used?
Any answers/suggestions would be appreciated.