A 10-Point Plan for Funds (Without Being Overwhelmed)

Enjoy the Benefits of Commercial Real Estate Through Through the Triple Net Lease 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 plenty of lease options on hand that are available to use in the market today. 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.

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. Under such leases, the tenant is duty-bound to pay property taxes along with the rent.

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 delightful endowment from the lease fairy put on the tenant’s tab the rent, insurance, taxes, and maintenance expenses. 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. 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. On the other hand, the triple net lease is not only beneficial to 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. 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. Not only are investors freed from the financial woes, but from the stress regarding how these costs will be covered, or how the bills are to paid, and more.