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The most significant downside to owning a home on leased land relates to building equity. For many people, homeownership is a major source of wealth. With a leased-land property, you risk losing all of your equity at lease expiration, depending on the terms of the surrender clause.
While NNN ground leases can be greatly beneficial for investors, there is an important tax consideration to make when determining if this type of lease and investment is the right one for you. As a landowner in a NNN ground lease, you will typically be responsible for the annual taxes on the land itself.
A ground lease involves undeveloped commercial land that is leased to tenants, who then have the rights to develop and use the property for the duration of the lease.? Ground Lease in Commercial Real Estate (Janover, Feb. 19, 2023)
However, there are certain rights established by Idaho law that cannot be avoided by the lease. In brief, these rights include the right to privacy, the right of quiet use and enjoyment, the right to safety and health, the right against discrimination, and the right to possession of the premises.
Idaho law defines ?normal wear and tear? as "that deterioration which occurs based upon the use for which the rental unit is intended and without negligence, carelessness, accident, or misuse or abuse of the premises or contents by the tenant or members of his household, or their invitees or guests.? Idaho Code Section ...
The New Jersey Department of Community Affairs Division of Codes and Standards says landlords are not obligated to paint rental units more than once every three years ? and even then, only if necessary. The same generally applies to the carpet.
Idaho tenants must request repairs by describing the issue in writing and delivering the notice to the landlord. Repair requests can be given personally to the landlord or responsible employee, left at their offices, or sent by certified mail. The landlord has three days to fix issues after receiving notice.
Unfortunately, the law doesn't give guidelines as to how often the carpet has to be replaced. you can always request it be replaced, however.