Leasing Rental Properties

Written by Marc on September 6th, 2007

Yesterday, while driving down the road, I came across an interesting sign.  It was a sign from a local commercial leasing company who was offering to build whatever building you needed, provided you leased it.  Now, you might wonder what was so interesting about this, but one of the items on the sign caught my eye:  rental.

Now, I may have read the sign wrong, as I would expect to see “retail” on the sign.  That aside though, it did give me a good idea – leasing rental properties.

I am not thinking of this in the traditional sense where you get your tenants to sign a lease for X amount of months.  Rather I am thinking of it from this perspective – leasing the whole building to someone who will rent it out to tenants.

This may not be viable for all rental units, but larger apartment complexes should still give you a good return on your investment.  Basically, you would lease the whole building to a lessee at a rate that would give them room to make a profit renting them out as individual units and allow yourself to get a profit as well.  It makes it easier for you as you only really have one tenant so there should be less headaches.  From the lessees perspective, they can have an income property without a large cash investment.  Sure, their cash in pocket wouldn’t be as high, but then again, the investment would be less.

Just remember to consult a lawyer before trying this type of investment.  Also, consult an accountant to see if this would be viable for your investment property.

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