Master lease, as defined by business dictionary, is a controlling lease under which a lessee can sublease a property for a specified time period not extending term of the master lease. Basically, a master lease indicates and specifies the right of the lessee to sublease either a real estate property or any equipment with significant value and the right to control the mentioned item or properties for a certain period of time.
You might also want to consider checking out these Sample Forms to help and guide toward your endeavors along the way, especially if you do not have any slightest clue on what to do, where to begin, and how to go about the entire situation.
8+ Master Lease Agreement Samples
Master Lease Agreement Sample
Sample Master Lease Agreement
Commercial Master Lease Agreement
Master Equipment Lease Agreement Sample
Master Operating Lease Agreement Example
Other than that, we also have examples of Business Partnership Agreements as well as examples of Construction Contractor Agreements for free, which you may also find useful and effective, especially if you are just getting started.
As you might wonder or even ask yourself why you would consider having to master lease a real estate property or an equipment property with significant value, here are some handful ideas, a number of steps and insights, that might be useful and helpful for you.
Master Vehicle Lease Agreement Sample
Master Lease Agreement Contract in PDF
Master Finance Lease Agreement in PDF
Free Printable Master Lease Agreement Sample
Pros and Cons in the Sight of a Master Lessee
The Pros
- Long-term security lease – since master-leasing a property would entitle your subtenant to an owner financing, depending on the agreement, you can expect having a cash flow every month, which may save you from paying for your own rent.
- Future negotiations – since you are master-leasing, you can definitely have the option to lease the unit or the property to another buyer or you can let them rent it. And choosing the latter would seem efficient and a lot more profitable. Other than that, there is also a huge probability of future negotiations when meeting with a lot of people and networking with them.
- Builds relationships that would then lead to owner financing – owner financing, as defined by the Investopedia, is when a property buyer pays his or her purchase to the person or the entity who is selling it directly. Interestingly enough, it is also known as creative financing or seller financing, since it would frequently occur when the prospective buyer is not able to get the funding through the conventional way of mortgage or if he or she does not want to pay for the interest rates.
The Cons
- First payment risk to your landlord – most often than not, you would still have to pay for the lease to the property owner or entity even if your subtenant has stopped paying the rent.
- The possibility of having a negative cash flow – there is a huge probability that you will have unexpected repairs to deal with alongside with your expenses and liabilities, both of which can lead you to have a negative cash flow on your investment.
- To make the unit profitable, you would have to make a capital improvement – it is mainly common sense that you definitely would have to consider spending extra to make the appearance of your unit look profitable so that it can be enticing for clients to rent for more cash flow.
For more relevant information, you can always refer to this page’s example of Consulting Agreements as well as some examples of Lease Purchase Agreements.
Related Posts
Sample Business Agreement between Two Parties
FREE 9+ Shop Rental Agreement Samples [ Commercial, Lease, Tenancy ]
FREE 10+ Charter Agreement Samples In MS Word | Google Docs | Apple Pages | PDF
FREE 10+ Mentoring Agreement Samples In MS Word | Apple Pages | PDF
FREE 10+ Partner Agreement Samples In MS Word | Google Docs | Apple Pages | PDF
FREE 10+ Individual Agreement Samples In MS Word | Google Docs | Apple Pages | PDF
FREE 10+ Strategic Agreement Samples In MS Word | Google Docs | Apple Pages | PDF
FREE 10+ Equity Agreement Samples In MS Word | Google Docs | Apple Pages | PDF
FREE 10+ Producer Agreement Samples in MS Word | Apple Pages | PDF
FREE 10+ Grant Agreement Samples In MS Word | Apple Pages | PDF
FREE 8+ Meeting Agreement Samples in MS Word | Google Docs | Apple Pages | PDF
FREE 10+ Community Agreement Samples In MS Word | Google Docs | PDF
FREE 8+ Real Estate Option Agreement Samples in MS Word | PDF
FREE 10+ Call Option Agreement Samples In MS Word | PDF
FREE 10+ Advertising Agreement Samples In MS Word | Google Docs | Apple Pages | PDF