How to Achieve Maximum Success with Investments

January 9, 2017

financial

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

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

There are plenty of lease options on hand that are available to use in the market today. 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.

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.

With single net leases, the tenant has to pay for the property taxes over and above their rent. With double net leases, the tenant must pay not only the rent and taxes but the insurance as well. Such magical present granted by the lease fairy makes tenants pay for rents, taxes, insurance, as well maintenance. With such an agreement at work, investors do not have to worry about spending for all of the ownership-related expenses.

Several tenants probably will not agree to a lease system such as the triple net 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. 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. 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. 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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