Why can't renters be charged triple net similar to commercial leases?
Doesn't seem crazy that renters aren't responsible for the costs placed on homeowners?
For those who don't know, triple net means that commercial businesses leasing a unit are responsible for property tax, maintenance fees, insurance, etc incurred by the unit being rented. Basically the costs of the unit get passed on to those using the unit.
A similar system would be very appropriate for rentals as it helps fix the profit margin for the rental owner. Say a rental owner is making a 5% profit and school taxes, maintenance, or property taxes go up. With the rental restrictions he may not be able to raise rent to cover this. With triple net, these costs get passed on to the renter so the 5% profit margin is almost always maintained. Hell if renters had to pay the costs to actually maintain the place and the taxes maybe they wouldn't keep voting to tax the rental Owners.
Does anyone know why we don't allow a triple net system for residential? To me I am surprised anyone gets into residential rentals given that profit margins are very unstable. You could be making a profit one day, a loss the next, and you couldn't kick out the tenant or increase rents to cover the loss.
If there was triple net, then renters would be much better prepared for home ownership should they wish to purchase a home. They'd also probably take much better care of the home to avoid someone being hired as the maintenance gets charged back to them?
Am I crazy to suggest this? Rather than increase rents I'd expect this to decrease them as then renters could compare the profit margins each place is charging and could work to decrease the rent by doing their own maintenance. This way the government could provide tax decreases to rental properties that get directly passed on to renters.
Triple net would help renters feel much more connected to their own homes. Allowing them to emphasize with the homeowner and treat the home better. The current system creates a homeowner versus renter conflict while a triple net system would help create a team both wanting to maintain the property at the lowest cost.
Triple net would help separate average rents into costs and profit margins. This would better allow BC to lower costs to help renters and with profit margins visible renters will be able to better choose a place to rent.
Last edited by misher; Nov 24, 2018 at 12:45 AM.
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