If you’ve seen a triple net lease for sale, you may be wondering if a triple net lease is a good investment opportunity. We’re here to tell you that it’s not just a good opportunity – it’s a great one. Read on to find out about the benefits of triple net leases, and about how Net Lease World can help connect you with prime prospects.
What is a Triple Net Lease?
If you are not already familiar with them, a triple net lease is a lease agreement in which the tenant is responsible for property taxes, insurance, and maintenance. This arrangement comes with a variety of benefits for landlords and tenants. Here are some of the reasons why you should consider investing with a triple net lease.
One of the most time-consuming aspects of property investment is upkeep. For example, with apartment or single-family home leases, landlords are usually responsible for taking care of anything that goes wrong. As a landlord in a triple net lease, your day-to-day responsibility is very limited. Since the tenant takes care of maintenance, building improvements and repairs don’t even need to be on your radar.
Stable Source of Income
Triple net leases usually bring in steady, reliable income. Most triple net leases are drawn up for commercial properties which are leased and managed by one tenant, like shopping malls (1). Because of the ongoing business taking place at the property, the income is usually fairly secure. The leases also usually include built-in rent increases (1).
Benefits for Tenants
Triple net leases are also an attractive option for tenants. Since the tenant is also responsible for more of the property costs, the rent is usually lower than it would be otherwise (1). Also, a triple net lease allows the tenant to have a high level of control over building operations. They can take it upon themselves to solve minor problems and make improvements. This removes the frustration of waiting for a landlord to address things.
Another benefit for tenants is that the landlord is usually still responsible for the condition of the building’s roof and basic structure. If there are major problems, the tenant can ask the landlord to deal with them.
Find a Triple Net Lease for Sale
Triple net leases make great investment opportunities. The risk for the investor is very low, and so is the daily responsibility. At the same time, tenants are happy with lower base rent and greater freedom. If you’re ready to take this next step in investing, Net Lease World is ready to help you find the perfect property.
With our search tool, you can look for triple net lease properties in your area. You can search by price and capitalization rate, as well as your preferred lease term. Maybe you even have a specific company in mind that you’d like to work with. If you do, you can also search for properties by tenant name. Breaking into triple net lease investing is a great move for your portfolio, and Net Lease World makes it simple to find the right property. Check out our listings today!
1. ‘Triple Net Lease (NNN).’ Source: https://www.investopedia.com/terms/t/triple-net-lease-nnn.asp