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.
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.
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. With these leases, it is the tenant who should be making property payments aside from the rent.
The single net leases insure that the lessee pays the taxes on real estate on top of the rent. Double net leases pass to the tenant the burden of paying the taxes as well with insurance on top of the rent. Such magical present granted by the lease fairy makes tenants pay for rents, taxes, insurance, as well maintenance. 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. 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. 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. But then, the NNN investment actually benefits not just the investor.
A triple net investment can be beneficial to tenants in the form of lower permanent rents. They will find this situation mostly favorable in 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. 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.