If you’re looking to get involved in commercial real estate but don’t want to deal with the headaches or risk, then consider a triple net lease investment. Many investors shy away from the lucrative world of commercial real estate because they associate it with tenant issues, unforeseen expenses and fears that leverage will work against them.

Many real estate investors have been bogged down with common homeowner concerns like maximizing occupancy, managing expenses, and dealing with property headaches. Triple net lease investments minimize the work and risk associated with all of these concerns and make homeownership simple.

There are a variety of leasing options available for use in today’s market. As with financing, sometimes investors have to get creative with leases to maximize our investment or even make a deal happen. In addition to the normal type of lease you may be familiar with when leasing a car, house, or apartment, there are a variety of leases that are common in commercial real estate and more advantageous to the investor; these are called net leases. There are triple net (NNN), double net (NN), and single net (N) leases that transfer some or all of the fixed and variable costs of maintaining the property to the tenant, rather than the landlord. These leases place the burden of paying property costs and rent on the tenant.

There are single net leases that ensure that the tenant pays property taxes in addition to their rent. Double net leases have the tenant pay rent, taxes, and insurance. However, the best lease for investors is the triple net lease. This magical gift from the rental fairy bills the tenant for rent, taxes, insurance, and maintenance. With this agreement in place, the investor does not need to worry about paying all the expenses normally associated with the property.

Some tenants may not like the idea of ​​a triple net lease investment. Many cite that with this type of arrangement, your costs can be difficult to calculate or predict. For example, if they are responsible for repairs and maintenance, your costs could skyrocket a month. Unlike regular leases where the tenant would always know their fixed rental costs, a triple net lease exposes them to variable costs that they may not be able to predict.

However, on the other hand, a triple net lease investment does not only benefit the investor. Tenants in a triple net lease will enjoy lower fixed rents. The situation works best in your favor in a new building. Here you will enjoy lower rent, as well as lower maintenance and repair costs due to the age of the building.

Of course, a triple net lease works better for us, the investors. It frees you from many expenses that normally have to be paid out of our income. Along with the financial burden, investors are relieved of the duties of worrying about covering these costs, paying bills, etc. All you need to do is make sure tenants pay on time and you are gold!