Question:
Dear Jennifer,
I own my space. Now that I am selling, how do I best protect myself as landlord?
Thanks,
Dr. N
Answer:
Well, your space is a considerable asset, one that is best protected by passing through any and all known and unknown expenses. We do this by working with a triple net lease, which is a lease constructed to pass all costs of ownership, or most costs, to the tenant. Those costs might include replacement of an HVAC system, taxes, building a structural repairs, extermination, snow removal and garbage removal, to name a few. We may also want to pass along the cost of maintaining a parking lot, Improvements and general maintenance cost. Now, of course, the tenant is going to want a gross lease, which is a lease where all costs are included in the total price. Market conditions dictate triple net as pre-standard or what’s called and modified gross lease, which is set price for the rent plus some floating charges, including taxes and certain maintenance expenses. As landlord in the deal or the tenant is buying your practice, we will have certain average on the lease and hopefully we can dictate a longer term with preferable payment terms. The lease should be negotiated as a key transactional document, simultaneously with the purchase agreement.
Dear Jennifer,
I own my space. Now that I am selling, how do I best protect myself as landlord?
Thanks,
Dr. N
Answer:
Well, your space is a considerable asset, one that is best protected by passing through any and all known and unknown expenses. We do this by working with a triple net lease, which is a lease constructed to pass all costs of ownership, or most costs, to the tenant. Those costs might include replacement of an HVAC system, taxes, building a structural repairs, extermination, snow removal and garbage removal, to name a few. We may also want to pass along the cost of maintaining a parking lot, Improvements and general maintenance cost. Now, of course, the tenant is going to want a gross lease, which is a lease where all costs are included in the total price. Market conditions dictate triple net as pre-standard or what’s called and modified gross lease, which is set price for the rent plus some floating charges, including taxes and certain maintenance expenses. As landlord in the deal or the tenant is buying your practice, we will have certain average on the lease and hopefully we can dictate a longer term with preferable payment terms. The lease should be negotiated as a key transactional document, simultaneously with the purchase agreement.
Have a question for Jennifer? Email is best. You can reach her at Jennifer@Kirschenbaumesq.com.
