Sub2 then L/O - Repairs

Hello Everyone,

If I purchase Sub2 then L/O I know I make it that my TB is responsible for minor repairs. My question is if some big happens like furnace needs to be replaced or roof; who pays for that? Would it be me or the TB?

Thanks for the assistance



You would be responsible for anything major as your leasee has not exercised his option and does not own the property on title!


Depends upon the wording in your lease agreement and your state’s landlord-tenant laws.

In the state of Georgia, I have seen Judges throw out cases where the Landlord (owner of the option) passed the repairs off to the tennant buyer. As the owner, the landlord is responsible for the major repairs no matter what the lease says.

However, I know of other investors who are requiring Tenant Buyers to purchase a Home Warranty. The lease requires the tenant buyer to pay up to the point where the home warranty kicks in. I’m looking into this know for my business.

I would welcome feedback on this strategy as well.