Void Signature Triple Net Lease Agreement For Free

For property investors, who want to own a revenue-generating property and pay as little attention to it as possible, a triple net lease allows them to offload the work of managing things like maintenance and taxes to the renter. A triple net lease also gives the renter some flexibility and control over their expenses.

NNN ? Triple Net ?This type of lease rate includes the base rental rate plus the three N's. One ?N? stands for property taxes, one for property insurance, and the final ?N? stands for common area maintenance (CAMs).

Triple net leases can also include utilities, maintenance of the building, insurance, and other fees. Here is where the negotiation comes into play. You can attempt to negotiate the total amount that you would pay for the triple net portion of the lease.

The owner of a small computer business enters into a triple net lease to rent a 2,000 square foot retail space at $20 per square foot annually for a term of five years with an annual 3% increase in base rent. The 2,000 square feet represents 20% of the retail center's square footage.

Triple net leases are common for industrial commercial space where single tenants lease entire warehouses.

Triple nets are typically calculated by projecting the total amount of expenses for the coming year, dividing it by the total rentable square footage of the building, and then dividing that by 12.

Single Net Lease (N Lease): In this lease, the tenant pays rent and property taxes. Double Net Lease (NN Lease): In this lease, the tenant pays rent, property taxes, and insurance. Triple Net Lease (NNN Lease): In this lease, the tenant pays rent, property taxes, insurance, and maintenance costs.

Cons of Triple Net Leases Tenants might invest some work and time in property management, from hiring repair companies to comparing and buying insurance and protesting taxes if needed. Some unexpected costs (in maintenance or tax liabilities, for example) may arise during the time of occupancy.