What is NNN Property (Triple Net Property)? What are the pros and cons?
If you are interested in Triple NET real estate investment, you first need to know about Triple N rental. A triple N lease is a type of lease for a commercial building in which the lessee promises to pay all costs of the property, including property taxes, insurance for the building, maintenance and repair costs, etc. In a typical commercial real estate lease, property taxes, building insurance, and management are usually borne by the property owner. Depending on the terms of the contract, the lessee may also be responsible for common facility management fees and utility costs in addition to rent.
A triple net lease is a type of net lease among the types of real estate lease contracts in the United States. A single net lease is a lease contract in which the lessee is responsible for paying real estate property taxes in addition to the rent, while a double net lease is a lease contract in which the lessee is responsible for paying property taxes and building insurance in addition to the rent. Here, a triple net lease is a rental agreement in which the tenant is responsible for property taxes, building insurance, building maintenance and repairs, along with the rent. Therefore, because the tenant bears these costs, the rent charged in a triple net lease is typically lower than the rent in a regular commercial lease. In some cases, the landlord may be responsible for maintaining the roof, structure and parking lot.