Spark Rental - Single vs. Double vs. Triple Net Leases.
A triple net lease is also known as an NNN (net, net, net) lease. Double net and single net leases In addition to a triple net lease, a commercial renter may encounter a double net lease, in which the tenant is responsible for property tax and property insurance as part of the rental agreement.
Net leases are generally either “double-net” or “triple-net.” In a double-net lease, the tenant is generally responsible for routine maintenance costs, utilities, taxes, and insurance, and the owner is generally responsible for expenses incurred for structural repairs.
Double net leases add the building’s insurance expense to the tenant’s responsibility, as well as property taxes. Triple net leases require tenants to pay property taxes, building insurance, and.
Net Leases: Net leases allocate building costs and responsibilities between the landlord and the tenant. The most common type of net lease is the triple net lease (“NNN”). With a triple net lease, the tenant pays taxes, insurance, and maintenance in addition to the monthly rent.
Double net (NN) lease: in the double net lease, the renter is responsible for paying for the building insurance as well as property taxes; Triple net (NNN) Triple net leases: triple net leases require the lessee to pay for building maintenance, property taxes and insurance. These leases command the highest property prices, as a class, and can.
The NNN lease structure is 0% Landlord vs. 100% Tenant. A Triple Net lease was designed to be landlord favorable, protecting the landlord’s interests against any changes, unexpected costs, etc. It creates 100% pass-through charges so that ALL the burden, responsibilities, risks and costs fall on the tenant(s).
A net lease requires tenants to pay for some property expenses the owner would typically cover. These added costs are in addition to their rent and may include things like utilities, maintenance, real estate taxes, and insurance.In general, a net lease renter is going to be a single tenant of a free-standing building. So, this might include a bank, a fast food restaurant, or a store.