Posted by Brent_IL on March 01, 2004 at 18:41:26:
Sure, it?s possible. If they have a triple-net lease, the tenant will pay for repairs. Regardless of the contractual obligation, in most rent-to-own and L/O situations the lessor will make certain that needed repairs are done because they are still essentially landlords, and it’s their property at stake. They may bill the tenant. The important thing is to make sure that repairs are being made, so that small problems don’t grow to the point to where the value of the property is being impaired.
In CFD-type sales, the tenants usually make repairs directly. The main reason that we sell via a CFD arrangement is to get rid of the expenses of ownership by passing them on to a new buyer. The land trust stuff is simply an accommodation for us if things go wrong.