What is the difference between net and triple net lease?

The tenant pays for property taxes, insurance, and maintenance of the roof, structure, and common areas of the NNN property. The difference between a triple net lease and an absolute net lease is that in a triple net lease, the tenant may not pay for expenses directly.

Are triple net leases bad?

The Good: For the tenant, the triple net lease can be great. A tenant has more freedom with the structure and can better customize a space for use WITHOUT the capital investment of a purchase. The tenant pays less for rent, as they have incurred other expenses.

Does Triple Net include utilities?

Tenants in a triple net lease agreement must pay utility expenses that keep the property running. This includes electricity, water, gas, sewage, trash and recycling, cable, phone, and internet. Major repairs to utilities may fall under the responsibility of the landlord, but this depends on the lease agreement.

Are triple net leases a good investment?

NNN leases are considered to be one of the most secure investment opportunities. This is because, similar to bonds, single-tenant net-leased properties provide steady and predictable returns over time.

Does a triple net lease include utilities?

With a triple net lease, the tenant promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. These payments are in addition to the fees for rent and utilities.

Is Triple Net paid monthly?

Expenses and Payments Associated with Triple Net Leases The landlord may prefer the tenant to make these payments directly each month or to cover the costs of these expenses through adjustments made at the anniversary of the leasing term–whether the lease is terminated or renewed.

Can you negotiate triple net?

Just because it is labeled as a triple net lease, does not mean that you cannot bargain and negotiate for different terms that better suit your needs. For instance, the parties to a triple net lease can negotiate for “caps” on certain expenses, such as maintenance repairs or property taxes.