What is Master Leasing in Real Estate?

What is Master Leasing?

Master leasing involves an individual or entity (the master tenant) leasing a property from the owner and then subleasing it to other tenants. This arrangement allows the master tenant to generate income by renting out the property at a higher rate than they are paying the owner, potentially without having to buy the property. The master tenant assumes the role of a landlord for the subtenants, handling day-to-day operations, maintenance, and tenant relations, while also ensuring the lease terms with the property owner are met. This strategy can be advantageous for those looking to enter the real estate market with lower upfront capital, but it requires careful management and legal compliance to be successful.