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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. Triple net lease investments reduces the work load and risks correlated with these concerns and makes the task simpler for the landlord.

Today, there is an array of lease opportunities that the marketplace has to offer. 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.

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. 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. 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.

Several tenants probably will not agree to a lease system such as the triple net 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. 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. Not only will they enjoy lower rent in new buildings but they will also be spending less for repairs and maintenance because of its age.

If you are an investor, a he triple net lease certainly serves your interest the best. It liberates you from the various expenses that generally have to be taken out of 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.