Master Lease Agreement Example
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FAQ
A master lease is a type of lease that gives the lessee the right to control and sublease the property during the lease, while the owner retains the legal title. In this case, a housing authority or service provider would be the lessee, allowing them to sublease the property to its clients.
A master lease is a type of lease that gives the lessee the right to control and sublease the property during the lease, while the owner retains the legal title.
From a landlord's perspective, master leases carry at least two additional risks ? the bankruptcy of the master tenant and a potential re-characterization of the master lease as a guaranty.
You receive all profits, i.e., net cash flows after subtracting the regular lease payments and expenses. The buyer receives all tax benefits from the property. You are responsible for managing and maintaining the property, including paying utility bills, annual insurance premiums and property taxes.
Master leasing allows the system to overcome some of the more traditional barriers people face in accessing housing in the private rental market, including incarceration and eviction histories or issues related to credit, employment, or income.