Net Lease, Net..Net, Triple Net? Who pays for what? This is an important thing to know when entering into a lease agreement or buying a property that currently is in a leasehold status.
It is a fairly simple definition. A Triple Net Lease is also known as Net Net Net Lease or NNN Lease. This is a type of net lease in which the tenant pays all or part of the taxes, insurance, and maintenance associated with use of the property. These fees are paid in addition to the tenant's regular monthly rent.
A Net would be rent plus the taxes and the Net Net would be rent plus Taxes and Insurance. This is not an absolute just a general guideline.
A NNN lease usually favors the landlord, but the landlord should still check on the property periodically to make sure that all reasonable maintenance is being preformed.
Simple Fact! Read your leases. If you don't understand something consult an attorney. Leases, as with all contracts, can have language in them that are not common place and they should be interpreted by a professional.
Remember that each lease is it's own vessel so don't assume, I've read one, I've read them all. Pay close attention and know what you are getting into.
Have a great Day!
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