are tripe net leases on residential property legal in florida

In Leasing Property - Asked by SUE M. - Feb 18, 2013
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Answer(s)

Chris S.
Broker/Agent
Coeur D'alene, ID

Not sure why they would be illegal, but they are very rare for residential. You might want to check on fair housing laws and/or rent control ordinances. Maybe this is where the concern comes from ... good luck.

Feb 18, 2013
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Rob B.
Chandler, AZ

Sue....
Yes, I believe a triple net lease in Florida for residential could be used. However, if you have questions check either with an attorney or the Department of Real Estate for the State of Florida.
However, it would be my recommendation to keep it simple. Determine how much your property taxes and insurance are going to be for the rental year. Include an annually amortized amount in your lease for these. Then do a modified gross lease, which basically to establish a monthly amount. Have the tenant be responsible for the care and expense of upkeep for all interior maintenance on the property.
With this lease, you will take care of all external maintenance, (gardening, pool, tree trimming etc.) This way you will always know that the exterior of the property looks good. If something needs repair within the house, the tenant must pay!
I believe this type of lease will be more acceptable for all concerned; thus, you will likely get a larger pool of rental prospect than if you used a pure NNN lease. In the end the larger market of prospects should give you a better choice for a quality tenant.
Onward and Upward....
Rob Baird
Holding one of the oldest active real estate licenses in CA
CA DRE 544165
AZ DRE BR 641305000
rob@capratecommercial.com

Feb 20, 2013
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Patrick S.
Owner/Investor
San Antonio, TX

Leases where the tenants pay the expenses are common in commercial settings, when a Landlord wants to ensure that increases in taxes, insurance, etc. over the term of a long term lease (5-10 years+) are covered.
In a residential lease that would typically be a year, all of those costs are known, so for Landlords it is more typical to just include all of those costs into the base rent. Residential tenants are less likely to be willing to assume the risk of taxes going up substantially and affecting their rent.

Mar 11, 2013
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