The Beginner’s Guide to Investments

Make the Most of Commercial Real Estate by Investing in the Triple Net Lease

A lot of real estate investors are held-up with the usual landlord concerns like maximizing occupation, managing expenses, and coping with the headaches associated with property ownership. 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. 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.

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

The single net leases insure that the lessee pays the taxes on real estate on top of the rent. Double net leases pass to the tenant the burden of paying the taxes as well with insurance on top of the rent. 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.

Some tenants might not like the concept of a triple net lease. 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. The triple net lease opens up the tenants to variable expenses that are practically very hard for them to predict, not like a regular lease where they will always be familiar with their preset rent expenses. 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. They will find this situation mostly favorable in new buildings. There, they will get to enjoy the reduced rent along with little maintenance as well repair costs because of the age of the building.

Naturally, the triple net lease is most favorable for you as an investor. You are able to break free from the many expenses which usually have to paid for out of 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.

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