A GUIDE TO NET LEASED INVESTMENT
Commercial Landlord property owners prefer it right when a tenant not only pays for the rent of the property but also incurs the cost of maintance of the property or any relevant insurance taxes, this is what is known to as net lease investment. Ten to past twenty years is the period in which mostly this kind of a lease agreement is operated, this is quite good for both parties that is the landlord and the tenant since they don’t need to consult on how to do some repairs and maintenance one has just to refer to the contract agreement. The difference between the triple-net investment and double net investment is that in triple net investment the tenant is responsible for maintenance and replacement of parking lot and the roof if need be but on double investment those responsibility lies with the landlord of the property, but in both cases however the tenant is responsible for doing repairs and maintenance plus paying of insurance, these factors have made most commercial leases to be either triple net or double net investment.
In order to share risks financial partners can team up and form a team and buy such asserts, otherwise due to illiquidity challenges it may be challenging for an investor to go in it alone, even though if one does not want to join the stock market then this can be ideal for him. There are some important aspects that any interested investor should look into before deciding on the best triple lease investment to chose.
Considering whether straight lease agreement compared with triple net lease investment is the same, obviously it should be three-pronged lease agreement should be very cheap as computed on a monthly basis. After ownership responsibility what ones pay should not exceed what was to be paid in case of reasonable monthly rates. Experience is one proper factor to consider when searching for a triple net investment of choice, since this will give you some hope that they have been in the market for long and they realy understand the logistics of doing such kind of business.
There are some of the excellent benefits that are enjoyed by the landlord or the property owner once he has decided to make triple net investment, among them is relief of landlord responsibilities, such as doing repairs, paying taxes as those will be done for you by the tenant. A good income will be expected by the landlord for a very long time that is the time the tenant has leased the property without fail, this will help the landlord make other investment and plan keenly. Time and money is what it takes for managers to do their administrative jobs, when an investor decides to triple lease his property he will have a lot of saving since he will not be responsible for managing the property he will be just receiving money from the investment and enjoying the fact that his investment is appreciating day by day,