Finding Similarities Between Options and Life

Triple Net Lease – Maximizing A Landlord’s 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 a range of lease choices being offered in the marketplace these days. 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.

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 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. With these leases, it is the tenant who should be making property payments aside from 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. Having this agreement on board relieves the investor of his/her obligation to pay for each and every expenses that normally come with ownership.

There are tenants who may not be agreeable to the tripe net lease 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. Like if they have to pay for repairs along with maintenance, and subsequently their costs might blow up 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. However, such triple net lease investment does not benefit investors alone.

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. 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. 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.

Source: read the full info here