{"id":40359,"date":"2021-07-30T18:19:47","date_gmt":"2021-07-30T12:49:47","guid":{"rendered":"https:\/\/www.oracleglobe.com\/?p=40359"},"modified":"2023-08-27T19:08:22","modified_gmt":"2023-08-27T13:38:22","slug":"a-newbies-guide-to-triple-net-leases","status":"publish","type":"post","link":"https:\/\/www.oracleglobe.com\/a-newbies-guide-to-triple-net-leases\/","title":{"rendered":"A Newbie’s Guide To Triple Net Leases"},"content":{"rendered":"

You’ve dabbled into some real estate recently and learned all you can about their jargon, specific terms, and even their investment schemes. With that said, you might have heard of one lease scheme (<\/span>read more<\/span>) popular with those having commercial structures, not for residential use\u2014the Triple Net Lease. Structure plays a great role in this scheme, and as a player in the real estate field, it’s imperative to learn all about them.<\/span><\/p>\n

For residential buildings, a residential lease is often considered. However, the Triple Net Lease (or NNN for short) is not applicable for this type of property use. Instead, NNN focuses more on commercial use, especially on single-tenant buildings. It’s an excellent choice for landlords and investors, but can a tenant also benefit from it? We’ll be covering that and more in this article meant for both tenant and landlord.<\/span><\/p>\n

\"\"<\/p>\n

2 Types Of Real<\/b> Estate Leases<\/b><\/p>\n

There are two main types of real estate leases you can learn about: Gross and net leases. The only difference between these two is the types of expenses the tenants are expected to pay for.\u00a0<\/span><\/p>\n

    \n
  1. Gross Lease\u00a0<\/b><\/li>\n<\/ol>\n

    When the tenant and landlord agree upon a fixed rate for the rented area, this is called a Gross lease. Some differences can also occur from contract to contract, as a certain number of landlords will let the tenant pay utilities such as electricity and water bills. It still depends on what terms both parties have agreed upon.\u00a0<\/span><\/p>\n

    This type becomes one of the most commonly known for apartments. It’s the usual arrangement seen in the U.S when it comes to residential buildings. Other forms of use can also utilize gross leases, such as hotels, motels, inns, and storage units.<\/span><\/p>\n

      \n
    1. Net Lease<\/b><\/li>\n<\/ol>\n

      Net lease focuses more on the tenant than the landlord or owner when it comes to financial obligations. The tenant can be responsible for paying taxes, utilities, insurance, etc. This category is where the <\/span>triple net leases<\/span><\/a> falls into. However, before going forward with this type, there are two other choices for both parties to choose from and one ultimatum.<\/span><\/p>\n

      There are four sub-categories for a Net Lease. They are:<\/span><\/p>\n