Post Office Rental Agreement

We find that investors often pay too much for their postal investments. In these cases, the rental price is likely to be higher than the market and will be reduced in the next expansion of the lease/option, or the lessor`s return will decrease significantly. I also note that many investors in rental post offices never take into account the fact that mail rents for 5,10,15 or even 20 years are flat and do not take into account increases in CPI or LDC rates. Although not part of an affiliated association such as APO, post office buyers often do not know how to find comparable rents, comparable conditions and average cap rates for which post offices sell. The USPS has „rental rights“ and, since they have developed the leases, they tend to favour the postal service. However, the USPS as a tenant means that the rent is supported by the U.S. government, which provides valuable security for your investment. Dakotafire`s second article deals with the subject and comes to a similar conclusion: post offices often lease more than comparable commercial properties in the commune. You can use this agreement for all property inside: The following analysis is used by USPS Leased Facilities Reports (just like Dakotafire). We compared rents for state landlords to non-government landlords. This is a little different from Dakotafire`s more nuanced approach, which used the actual distance between the mail and the owner`s address.

But for the national image the broader brushstrokes draw a fairly clear picture. That`s what it looks like. It allows you to live in a property as long as you pay rent and follow the rules. It also sets the legal terms of your lease. It can be written or oral (a spoken agreement). The Post Office is still a quasi-government agency that retains many rights of the federal government, for example. B important area. So one of the biggest advantages is that the federal government does not let the post office go bankrupt, so your rental income is actually guaranteed at the federal level. Considering that the rent is guaranteed and that the return on your investment should be at least 8-10% up to 15-20%, there is absolutely no comparison with traditional commercial real estate. Note: All investments are subject to the risk of loss.

Earlier this month, Dakotafire Media published a very good article on post office ownership. This is an important issue, as about three-quarters of the country`s post offices work in rented premises. As Dakotafire suggests, local homeowners can also invest more in opening the post office because they know first-hand how important the post office is to the community as a social hub. When there is a problem with the building, they are often quick to fix it. Following the conclusion of a lease review process that has been in place for approximately two years, United States Postal Service has officially announced its intention to use new forms for its post-lease agreements. The new individual rental form can be checked here and the new customer leasing form with multiple customers can be verified here. While there are many positives in renting a property, it is not without drawbacks and you should consider this before signing a rental agreement: Greater freedom of movement When you move into a rented property, long-term leases start as early as six months, making it easier for you to move in the short term if you need it.