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Advantages and Disadvantages of Leasing Balanced Cash Outflow. Quality Assets. Better Usage of Capital. Tax Benefit. Off-Balance Sheet Debt. Better Planning. Low Capital Expenditure. No-Risk of Obsolescence.

A triple net lease is an agreement between a property owner and a tenant where the tenant pays property taxes, insurance premiums, and maintenance upkeep and repairs, in addition to a monthly rental fee of the building or space.

Most lessors earn profit through significant charges outside of the regular term rent stream, including interim rent, retained deposits, fees, lease extensions, non-compliant return charges, fair market value definitions, and end-of-lease buyouts for equipment that cannot be returned.

Questions to Ask When Viewing a Commercial Property What type of commercial lease is being offered?What is the minimum lease term?What amenities are included?What insurance coverage is required?How much parking is allotted to the renter?Is there room for expansion?Can you make changes to the office space layout?

In 2022, the maximum most landlords can raise a tenant's rent 1.2% (rent control). Generally, a tenant's rent can only be increased once every 12 months, and the landlord must give the tenant written notice of a rent increase at least 90 days before it takes effect.

Triple Net Lease Pros and Cons Minimal Landlord Responsibilities.Long-Term Occupancy.Reliable Passive Income.Leases are Transferable.Protection from Expense Increases.Limited Upside Potential.Turnover Risks.

7. Triple net lease (NNN) A type of commercial real estate lease under which you typically pay the base rent, plus property taxes, building insurance and utilities, as well as other operating and maintenance costs. The landlord assumes no costs, other than those for structural repairs.