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. This type of investment is quite right for both parties that is the landlord and the tenant since it gives them freedom to carry on their business without any party having to consult the other concerning repairs, mostly this kind of a lease is long term in nature taking from ten years to over twenty years. 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.
If an investor is not interested in purchase of shares he can prefer going to this kind of investment, or even team up with another investor to form a partnership and buy this investment this will help the investors spread the risks among them and share the illiquidity challenge of this investment together. Knowing the right lease to take can be a challenge. Therefore it is okay if any investor considers some factors.
In order to maximize profits, investor should ascertain that using the triple net lease agreement is cheap compared to straight lease agreement , otherwise it won’t be of any help if it’s not economical. 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. All triple net investment is long-term investment in nature ranging from ten up to over thirty years, this gives the landlord certainty of income for all that period without even adding any money to the investment. The landlord will do a lot of saving of both time and resources since he will not be concerned about the management of the property, since he will not be entitled with managerial responsibilities of the property.