In triple net lease properties, the tenant is responsible for ALL costs (property taxes, insurance, and maintenance costs). Appreciation homes will act as the triple net lease tenant, eliminating all costs and responsibility from the homeowner.
A 1031 exchange benefits an investor since it provides an opportunity to defer all taxes resulting from selling real estate, if it’s exchanged into a new property.
Appreciation Homes is an investment-grade BBB+ credit-rated tenant that assumes responsibility for all day-to-day costs, vacancy-related costs, turnover, property insurance, property taxes, capital expenditures and leasing costs.
As the owner, you have no liability. Since this is a triple net lease, Appreciation Homes bears all the vacancy costs and liability associated with a vacant property. The owner will continue to collect their proceeds as normal.
