Triple Net Lease Properties nowadays are becoming popular among investors in commercial real estate. Triple Net Lease Properties may include office buildings, industrial parks, restaurants, retail and many others. However, unlike the traditional gross lease properties, in a triple net property, the tenant takes care of all the operating expenses related to the leased asset. One of the several reasons why NNN Lease Properties make a good investment is its simplicity and flexibility in term of management and payment.
Why is it beneficial to invest in Triple Net Properties?
Notably, NNN Lease Properties allow the tenants to take ownership by removing the landlord from all the responsibilities related to property management. The tenant becomes solely responsible for paying building insurances, taxes, and structural maintenance charges including the monthly rent to the landlord. Nevertheless, Triple net properties offer many benefits to the landlord as well, with lucrative income and security.
The following list sheds lights on the beneficial factors of investing in a NNN Lease property.
- Stable and Predictable Income Cash Flow: One of the primary reasons for the growing popularity of the Triple Net Lease Properties is stable cash flow. The long-term lease agreements of NNN properties guarantee a lucrative cash flow to the landlords with less risk factor. Therefore, investing in a single tenant property with a triple net lease seems an ideal investment choice for the landlords. They do not need to search for new tenants every single year as the length of NNN Lease ranges from 10 to 15 years.
- Zero Landlord Responsibility: Another attractive benefit of investing in NNN Lease Properties is zero landlord responsibility within the lease time frame. Triple net lease puts the entire burden of the leased property on the shoulder of the tenant. As a result, the landlords do not have to worry about or look after any property related issues after purchasing a triple net lease property.
- Little to No Maintenance Liability: In the case of Triple net properties, the tenant manages and handles every ongoing operating cost of the leased property starting from property repairing, maintenance to taxes and insurance. Therefore, the property owners do not have to deal with any repairing or maintenance issues and complaints. They simply enjoy the lucrative amount of monthly rent coming from the tenant.
- Financing: In the field of commercial real estate, the lenders prefer to finance NNN Lease Properties, as these assets offer stability in terms of predictable cash flow from the reliable long term tenants. Evidently, the investors or the landlords get the additional options in commercial financing.
Hence, investing in Triple Net Lease Properties can be highly profitable for the real estate investors seeking a great cash flow and stability. To help you in this important venture, seeking the assistance of an experienced nnn broker is really the key to success. A NNN broker can help close the most complicated deals and guide the investor through the transaction and make the transaction a worry free transaction.
