The Triple Net Lease
What is a "Triple Net Lease"?
The Triple Net Lease was designed to be favorable to landlords, protecting their interests against any changes or unfavorable costs, etc. All of these costs fall on the tenant, helping the landlord minimize their costs, risks, and responsibilities. These leases typically last between 10 and 25 years.
Who would want to sign a Triple Net Lease?
Investors who are looking for hands-off management investments often use Triple Net Leases to create investment income without the hassles of management. Tenants sign Triple Net Leases despite the risk of charges because these properties are in "Class A" locations. Tenants are often big corporations like Walgreens, McDonald's, or Walmart, or they can be a private tenant.
What are the advantages to Triple net lease properties?
- Triple Net Leased properties relieve owners from day-to-day management, requiring little or no landlord responsibility on the property.
- Triple Net properties have a steady-income stream from their tenants.
- Long term leases allow the investor to acquire a mortgage at a lower interest rate.
- Triple Net properties promise high return on investment.