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. 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. As with financing, investors likewise have to use their imagination occasionally, so as to take full advantage of their investments or even bring about a deal.
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 make the tenant spend for the rent together with insurance and taxes. 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.
There are tenants who may not be agreeable to the tripe net lease investment. Many point out that having this sort of agreement at work will make it hard for them to predict or calculate their charges. 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.
Tenants covered by the triple net lease will benefit from reduced fixed rents. 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.
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