Triple Net Lease – Maximizing A Landlord’s Investment
Several real estate investors have been detained by the usual concerns of owning a property like expanding occupancy, handling expenses, and all the other related headaches. A triple net lease investment minimizes the work as well the risks associated with every one of these concerns and simplifies the landlord’s job.
There are a range of lease choices being offered in the marketplace these days. Similar to financing, sometimes investor need to be resourceful with their leases in order to make the most of their investment or even cause a deal to happen.
Besides the usual lease type that you perhaps know from leasing a house to an apartment and a car, there is a variety of leases which are normal and from which a commercial real estate investor can enjoy more benefits, and these are referred to as net leases.
These are the NNN or triple net, NN or double net, and N or single net leases that transfer a few or all of the changeable as well as fixed expenses for the maintenance of the property to the lessee instead of the landlord. These leases forward the responsibility of paying the property expenditures and rent to the tenant.
A single net lease makes sure that the renter spend for the real estate taxes besides their rent. Double net leases pass to the tenant the burden of paying the taxes as well with insurance on top of the rent. 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. Thus, the investor is able to break free of all the costs that are usually associated with property ownership when this agreement is in motion.
Several tenants probably will not agree to a lease system such as the triple net 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. Such as their costs might become a lot bigger one month if they are in charge of the maintenance and repairs. Unlike the usual leases where tenants will always know fixed amount of rent payments, the triple net lease exposes them to inconsistent costs that they may be unable to foresee. 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 type of situation works well in the tenants favor in some new building. In a recently constructed building, they will be able to benefit from the cheaper rent plus the diminished fees for repair and maintenance, being that the building is new.
Of course, a triple net lease functions best for investors like you. It liberates you from the various expenses that generally have to be taken out of your income. On top of the monetary burden, investors are relieved of the responsibility of having to worry about how to cover these costs, pay for bills, and others.