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. With triple net lease investments, the job and risks related to all of these matters are reduced to a minimum and being a landlord becomes a lot easier.
Today, there is an array of lease opportunities that the marketplace has to offer. 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.
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 is the triple net (NNN) lease, double net (NN) lease, and single net (N) lease that forwards some or every variable and fixed expense of keeping up the property to the tenant, in place 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. With double net leases, the tenant must pay not only the rent and taxes but the insurance as well. This delightful endowment from the lease fairy put on the tenant’s tab the rent, insurance, taxes, and maintenance expenses. 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.
There are tenants who may not be agreeable to the tripe net lease investment. Many argue that with such an agreement, they might find it difficult to calculate or foresee their expenses. For instance, if they are bound to spend for repairs as well as maintenance, their costs could then swell one month. 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. On the other hand, the triple net lease is not only beneficial to the investor.
A triple net investment can be beneficial to tenants in the form of lower permanent rents. 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.
If you are an investor, a he triple net lease certainly serves your interest the best. It relieves you of the many charges that otherwise have to be compensated from your income. Other than these, investors are likewise able to break free from the worries of covering these expenses, paying the fees, etc.