In the real estate world, leasing of properties varies from owner to owner and the purpose for which the property is leased. Commercial property unlike residential structures varies in a number of ways, one being the types of leases available to a lessee. Despite differences, the two fields in real estate share some common factors and every contract is equally legally binding. NNN Properties are leased based on certain stated terms that are bound by the contract. A lessor and lessee come into an agreement before the lease is contracted.
NNN lease properties
Triple net lease properties are bound by a contract obligating all expenses that is; the insurance premium, maintenance and repair, and the property taxes besides the property base rent to the tenant. To the landlord, the lease plan presents a relatively low-touch and low-risk investment. Especially in commercial real estate, it is guaranteed that the tenant will rent out the property for an extended term and therefore consistent and dependable returns are guaranteed. On most occasions, triple net leases are long terms and more often than not, bondable. When a triple net lease is bondable, it means that the lessee is not able to back out of the contract before the lease term ends and the tenant is liable to reconstructing a building after casualties.
The triple lease is usually for a single tenant property that is mostly offered to high credit lessees to ensure that the property provides continuous income and is properly maintained to weather from wear and tear over the lease term. Most real estate investors are opting to invest in NNN Properties to build strong portfolios and establish strong sources of income. However, before a triple net lease structure is leased out, the lessor is obligated to run a check on the credit scores of a lessee.
Benefits of triple net lease properties
In the real estate market listings, such properties are usually much more affordable compared to N and NN properties.
Minimal repairs and maintenance is easily handled with the urgency it deserves by the tenant.
Long term leased property provides a long term business footprint for a business set up in a certain location over a long time will be easily physically identified.
It is a low risk investment for a lessor because the tenant handles all maintenance costs and insurances. Therefore, the lessee will make use of the property with utmost care.