It’s no doubt that leasing is a lucrative venture. It will give you a sustainable monthly income, and in some cases, push most of the expenses to the tenant. However, it takes time to build and consider it lucrative. Your choice of lease option matters, though. While there are various leases available, many investors opt for investing in triple net properties, and for a good reason.
What are the benefits of triple net investments?
Triple net leases are very common. In such agreements, the tenant pays the lease fee and caters to the expenses. These include; property taxes, property insurance, and maintenance costs. Triple net lease options are popular in commercial leasing, and you will get more information on the best NNN property locations from SIGnnn.com.
The gains of investing in triple net properties are;
- Tenant control
With these types of investments, the tenant handles the maintenance costs. They don’t have to call you to undertake repairs or sort other minute issues on the property. This frees a lot of burden off your shoulders, allowing you time to focus on other critical tasks.
- Reliable income
In triple net leases, the tenant remits the rent amount and still pays up for other expenses in your property. Most triple net leases go for about ten years, which gives a stable income flow. Also, the tenant may extend the lease period, which ensures a steady income.
- Minimal responsibilities
All property obligations can be costly and time-consuming. With this type of lease, you have few responsibilities, saving a lot of money and time. The tenant takes charge of most of the tasks, which frees you a lot of stress.
- Reduced need for property maintenance
Triple net leases take years, and some tenants plan to purchase the property afterward. Unlike in renting, tenants are likely to take proper care of your property. This maintains your structure in excellent condition with a reduced need for regular repairs. And the best bit? In case of need for renovations, the tenant caters to all the maintenance expenses.
- Low turnover rates
Unlike renting, leasing involves occupying the property for a certain period. In some cases, tenants extend the lease period or buy the property. Also, most tenants who lease such properties stay for long, which reduces the turnover rate.
What do I need to know when investing in triple net properties?
- Determine the expected returns
All real estate properties are different, and triple net investments are not an exception. The returns vary depending on the property location, the tenant, landlord responsibilities, and year of construction. Therefore, determine the type of preferred returns before deciding to lease your property. If the cap rate doesn’t entice you, consider other investment opportunities.
- Seek professional advice
Seek guidance from triple net advisors; they have vast knowledge on such investments and will help you locate an ideal investment for your needs. Only hire experts in the field to avoid making costly mistakes.
Triple net investments are common nowadays. If you want a steady income without catering to most of the expenses on your property, this is the way to go. With such investments, you’ll have fewer responsibilities and save a lot on operational maintenance costs.