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. The same as financing, investors sometimes must get imaginative when it comes to leases so that they can maximize their investment or facilitate for a deal to materialize.
On top of t he familiar sort of lease you might be aware of such as leasing a vehicle, a house, or an apartment, other types of leases are available in the commercial real estate industry and a lot more advantageous for an investor; these are the 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.
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. Having this agreement on board relieves the investor of his/her obligation to pay for each and every expenses that normally come with ownership.
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. For instance, if they are bound to spend for repairs as well as maintenance, their costs could then swell 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. 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. 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 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.