Best NNN Lease Property Tenants
Buying real estate property is one of the safest ways to invest your money and even make them work for you. Investment in triple-net or NNN lease property is something you can greatly benefit from and get ongoing passive income. In particular, buying properties leased to Walgreens is the preferred option of seasoned investors as they find it highly secure.
What is NNN lease property?
Before getting into detail about NNN lease property and the benefits it conceals, it is necessary to learn more about this concept. This will help you to better understand how the triple-net lease system works.
The NNN abbreviation stands for the net net net also known as triple-net, where each net signifies the particular parameter. Those three nets of the NNN structure are building operating expenses, property taxes, and building insurance.
In fact, the NNN lease is the form of agreement that is primarily used in the commercial real estate world. This type of lease means that tenants are fully responsible for each of the net points. Lessees have to take care of the maintenance costs of the building, pay regular property taxes, and cover housing insurance.
There are subtypes of the NNN strategy where only one or two net components are included. For instance, a single net means that tenants only have to cover property taxes, while the double net also implies that the costs for building insurance are added to the responsibility of lessees. However, the full triple-net agreement is most common in the commercial real estate property market.
Benefits of Investing in NNN Lease Property
Leasing under the NNN agreement has even more advantages than you can think about. Furthermore, buying the real estate property leased to Walgreens is something many investors are dreaming of. This is the best option for those who want to secure their money and get regular profits from it.
Constant cash flow
Before renting a real estate property for commercial purposes, its owners naturally have a question of whether the lessee is reliable enough. Not all businesses willing to rent a property can guarantee their stable profitability. That is why landlords are extra careful when it comes to choosing the right lessee.
When acquiring the property for lease, investors always keep in mind future profits and gains from it. Selecting the right tenant is highly important in order to ensure constant flow for decades. Leasing your property to Walgreens collaborating with broker Netleaseworld.com will assure stable passive income from your real estate property.
Walgreens is a company that stays on the market for a long time and shows stable growth. That is why investors who are already leasing the real estate property under the NNN agreement to Walgreens are very happy with such tenants.
Within the NNN agreement, one of the nets refers to covering property taxes. That way tenants take the weight off the landlords’ shoulders by making regular tax payments. The amount of those taxes varies from one state to another, however, tax coverage becomes the responsibility of tenants in any case.
The company Walgreens is known to be a perfect lessee as it covers all taxes for rented properties under the NNN agreement. Building owners even do not have to bother with the bureaucratic part of the process. Walgreens together with Netleaseworld.com know all the details about tax payments, so everything related to property taxation is under control.
Owners of commercial buildings have to keep in mind a lot of things even when the property is leased to tenants. Operating expenses and maintenance costs are the things that landlords would prefer to pass over to tenants. That is just because those are the tenants who exploit the building and the assets in it.
The operating expenses usually include various services that are used on a regular basis. These include trash collection, building security, elevator maintenance, exterior landscape design, and other services that are usually carried out by third parties.
While passing the responsibility for operating costs over to tenants is logical, maintenance costs are also included in the same net under the NNN agreement. This means that lessees are also responsible for taking care of the building itself. If any monetary contribution is needed for the repairs, tenants will also have to make it.
All these things related to operating and maintenance costs save a lot of time and money for landlords. It means that they only have basic responsibility in this case meaning that tenants have to care about paying for snow removal or building repairs.
As a rule, the properties leased to Walgreens always have outstanding locations in the city. Those are the places in the city that are selected based on a range of criteria, including competitive landscape and profitability modeling.
When purchasing buildings leased to such reliable tenants as Walgreens, investors have a great opportunity to make ongoing personal planning. Giving property for rent to successful businesses is secure and ensures constant cash flow. This means that the future income perspective can be analyzed beforehand.
The constant and stable renting amount also contributes to planning future investment projects. If you want to buy other real estate property for leasing, you can do that easily based on your current real estate profits.
The Difference between NNN and other Agreement Types
Every agreement between two parties has rights and obligations for each. Those agreements are also known as contracts with a set of rules, personal or company data, and signatures. They may vary from one real estate company to another, however, the idea always remains the same – to regulate relations between the landlord and the tenants.
The NNN agreement has already a predefined set of rules and obligations for both parties. Details regarding the operational costs and the amount of property taxes to pay are additionally specified there.
When compared to other official documents in commercial real estate, the NNN agreements usually specify a lower amount of base rent. This can be naturally explained by the fact the tenants have to handle other property-related expenses.