Make the Most of Commercial Real Estate by Investing in the Triple Net Lease
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 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.
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. 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 delightful endowment from the lease fairy put on the tenant’s tab the rent, insurance, taxes, and maintenance expenses. With such an agreement at work, investors do not have to worry about spending for all of the ownership-related expenses.
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. 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 tenant under this type of lease will have the benefit of fixed rents that are lower. They will find this situation mostly favorable in new buildings. 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.
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. 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.