Now that most people are able to buy a property and own it immediately, leasing the property becomes a better option for them. In fact, you may realize that some people buy the property after they have leased it for a long time. During the leasing period, one is able to get the time they need to organize their finances and prepare to own the property. What a triple net lease does is to designate or allocate the lessee or tenant the whole responsibility of the asset or property leased. In this case, the landlord and the tenant come to a mutual agreement that the tenant would be meeting the insurance and tax expenses as well as other miscellaneous expenses on top of the agreed normal fees. Learn more on TripleNet Gateway.
If you look at the triple net lease concept, you would discover that it is famous especially among the commercial building leasing. This has become popular because the property owner would no longer spend their energy and time thinking about property maintenance or even monitoring the property. All the operating and fixed expenses are left on the shoulder of the lessee. There is a document that both the owner and the lessee sign upon going through all the terms and agreements. One thing to note is that the triple net agreement is not just useful when leasing big properties but also when leasing smaller properties. Explore more on www.triplenetgateway.com.
When getting into a triple net lease, the actual net investment return for the leased property is made clear to the investor and owner to understand. However, certain problems may arise if the owner of a smaller property is going to leave the insurance burden to the tenant or lessee. Some think that the lessee or tenant may damage the property willfully so that they can be compensated once they make a claim. In such a case, the property owner would not benefit from the insurance compensation since they would all go to the tenant.
Before you get set to enter into a triple net lease, it is good to ensure you have factored some issues in mind. Some of the things to think about include relationship with the building owner, future operating performance, and the cost of capital among others. All those involved in a triple net lease need to be protected from unexpected expenses which occur due to eventual replacements, property maintenance, components wear and the age of the property. Some property owners establish a reserve fund where they get regular payments from the tenants so as to reduce such risks. Visit https://en.wikipedia.org/wiki/Investment for more information.