LONG TERM LEASE INVESTMENT.
Commercial Landlord property owners prefer it right when a tenant not only pays for the rent of the property but also incurs the cost of maintance of the property or any relevant insurance taxes, this is what is known to as net lease investment. This type of investment is quite right for both parties that is the landlord and the tenant since it gives them freedom to carry on their business without any party having to consult the other concerning repairs, mostly this kind of a lease is long term in nature taking from ten years to over twenty years. The difference between the triple-net investment and double net investment is that in triple net investment the tenant is responsible for maintenance and replacement of parking lot and the roof if need be but on double investment those responsibility lies with the landlord of the property, but in both cases however the tenant is responsible for doing repairs and maintenance plus paying of insurance, these factors have made most commercial leases to be either triple net or double net investment.
In order to share risks financial partners can team up and form a team and buy such asserts, otherwise due to illiquidity challenges it may be challenging for an investor to go in it alone, even though if one does not want to join the stock market then this can be ideal for him. Before an investor decides either to do triple net lease there are some issues that he should consider.
Cost effectiveness of the lease agreement should be among the very first to consider, that is making sure that the monthly or quarterly lease amount does not exceed the one you are paying under the triple net lease agreement. That is to clarify that owners expenses do not end up digging your profits, Experience is one proper factor to consider when searching for a triple net investment of choice, since this will give you some hope that they have been in the market for long and they realy understand the logistics of doing such kind of business.
There are some of the excellent benefits that are enjoyed by the landlord or the property owner once he has decided to make triple net investment, among them is relief of landlord responsibilities, such as doing repairs, paying taxes as those will be done for you by the tenant. All triple net investment is long-term investment in nature ranging from ten up to over thirty years, this gives the landlord certainty of income for all that period without even adding any money to the investment. Time and money is what it takes for managers to do their administrative jobs, when an investor decides to triple lease his property he will have a lot of saving since he will not be responsible for managing the property he will be just receiving money from the investment and enjoying the fact that his investment is appreciating day by day,