Triple net lease is also termed as an NNN lease. It is very different from traditional lease. A triple net lease is whereby the tenant is fully responsible for the payment of property taxes, insurance and building maintenance plus the rent. This to most people will sound like extra expenses. An NNN lease boasts of a number of a number of benefits to the tenants and landlords mentioned below.
The first advantage is lower rent. Because an nnn lease comprises of paying the property taxes, insurance and building maintenance, your rent might be charged lower as a result because of these extra charges that you are required to take care of.
There is minimal management for land lords who own single tenant property with an NNN lease. The tenant tends to do most of the work and therefore the landlord is left with minimal management. This is because there will be not much left after the tenant caters for property taxes, insurance and maintenance. It will be very advantageous for land lords with other jobs because they will be able to focus solely on their other jobs.
Stable Cash Flow
This type of lease promises landlords continuous and stable cash flow. New leases span for many years and therefore it is obvious that a positive cash flow will be experienced for quite a while. The worry of having vacant rooms in your building for quite some time as a landlord is a thing of the past with this lease with Triple Net Gateway.
More Financing Options
A single tenant property is different from real estate properties in that, single tenant properties have more financing options for investors because they are supported with the tenant’s credit while most real estate properties, loans are usually written against the value of the property. Therefore a triple net lease is beneficial for both landlord and tenant. It is therefore the way to go.
Low -entry price point
Compared to other types of property, single tenant properties are more affordable. For the wise investors, they could take advantage of the affordable pricing, buy the property at a fair price and get a tenant to pay up rent and as a result start earning the money he or she used in buying the property through the rent paid by the tenant. This could be a good way of investing that is worth trying out.
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