Triple Net Lease – Maximizing A Landlord’s Investment
Maximizing occupancy, taking care of expenses, and seeing to all the problems of property ownership are only some of the common landlord issues that real estate investors have been so involved with. Triple net lease investments reduces the work load and risks correlated with these concerns and makes the task simpler for the landlord.
There are plenty of lease options on hand that are available to use in the market today. As with financing, investors likewise have to use their imagination occasionally, so as to take full advantage of their investments or even bring about a deal.
Aside from the regular kind of lease, you are probably familiar with such as leasing a car, a home or an apartment, there other types of leases that apply to commercial real estate and additionally beneficial to investors, which are termed net leases.
There are leases such as the triple net (NNN, double net (NN), and single net (N) where the tenant, and not the landlord, has to take care of some or even all of the maintenance expenses. Under such leases, the tenant is duty-bound to pay property taxes along with the rent.
The single net leases insure that the lessee pays the taxes on real estate on top of the rent. With double net leases, the tenant must pay not only the rent and taxes but the insurance as well. This wonderful gift bestowed by the lease fairy collects from the tenant payment not only for the rents but as well for taxes, insurance, and upkeep. With such an agreement at work, investors do not have to worry about spending for all of the ownership-related expenses.
There are tenants who may not be agreeable to the tripe net lease investment. Most of them speak of the difficulty they might encounter in terms of calculating or predicting their costs if such an agreement is enforced. Like if they have to pay for repairs along with maintenance, and subsequently their costs might blow up one month. Contrary to regular leases where tenants will know their fixed rental amount they have to pay at all times, the triple net lease exposes them to costs that are inconsistent and which they are unlikely able to calculate. However, such triple net lease investment does not benefit investors alone.
A tenant under this type of lease will have the benefit of fixed rents that are lower. This situation is well-suited for tenants of new buildings. There, they will get to enjoy the reduced rent along with little maintenance as well repair costs because of the age of the building.
Of course, a triple net lease functions best for investors like you. You are able to break free from the many expenses which usually have to paid for out of your income. Other than these, investors are likewise able to break free from the worries of covering these expenses, paying the fees, etc.