Enjoy the Benefits of Commercial Real Estate Through Through the Triple Net Lease Investment
Several real estate investors have been detained by the usual concerns of owning a property like expanding occupancy, handling expenses, and all the other related headaches. 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. 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.
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 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 delightful endowment from the lease fairy put on the tenant’s tab the rent, insurance, taxes, and maintenance expenses. 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. Most of them speak of the difficulty they might encounter in terms of calculating or predicting their costs if such an agreement is enforced. 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 tenant under this type of lease will have the benefit of fixed rents that are lower. This situation is well-suited for tenants of new buildings. 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.
Naturally, the triple net lease is most favorable for you as an investor. It liberates you from the various expenses that generally have to be taken 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.