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Looking for property to rent? What about a triple-net lease?
Real estate has a lot of options for you to make your space and be a property owner, or to get a commercial place on lease. There are many opportunities to start your business in a place with normal rent. Yes, commercial properties on a low-budget rent are possible to get through the net lease.
So, if you reached here looking for net lease properties for sale, you are lucky to have found the perfect place. Here we will discuss what net lease properties are and why they are beneficial.
What is a Net Lease Property?
To get some property on net lease means the responsibility upon you is more than just paying for rent. Other charges may include property taxes, maintenance charges, and insurance, etc. based upon what type of net lease you have opted for. However, these are generally used in commercial properties.
It occurs in three forms that are single net lease, double net lease, and triple net lease. Divided on the basis of the additional charges, they serve the interests of different types of investors.
Here is a brief of all of them.
1. Single net lease:
When a tenant chooses a single net lease, they have to pay an additional charge of one particular thing along with the rent they have agreed upon. This usually is property taxes and tenants do not mostly have a choice to choose any other expenses to bear.
2. Double net lease:
Just like the name suggests, it has two types of other expenses for the tenant to bear. It is mostly the property tax and the insurance of the building along with the basic rent. Normally, it happens with a long contract.
3. Triple net lease:
This is one of the most famous and high demands among investors. Also known as net-net-net lease it needs the tenant to pay taxes, insurance of the building, and maintenance expenses.
If you are also looking for a triple net lease for sale, we recommend you go ahead. Where it might seem a big responsibility, it has many benefits for the tenants. Continue reading to know about it.
Why You Should Choose a Triple Net Lease?
A triple net lease comes with more responsibilities and lower rent. You might be thinking there are a lot of other expenses too, right?
Yes, exactly there are but even counting all of them, you end up saving the sky touching rental payments. Well, that does come at a cost but that does not outweigh the benefits. Actually, with a triple net lease, the tenant is agreeing to a bigger responsibility and high risk. And its reward is that you have to pay lower rents and the contract is signed for a long term which is great from an investment point of view too. Moreover, when the rents rise, a very low difference occurs in the price of net lease properties. For instance, it rises for an average of 1 to 2 percent as compared to 3 percent of normal rent properties.
Thus, there are a lot of perks you are going to have at the cost of some responsibility. Good luck with your investment.