With the current global economic condition, people are more encouraged to look for investment strategies to prepare for their future. Aside from life, medical, and retirement plans, investments can also be a good way to have a steady income when you’re not working anymore. One specific way to do this is by investing in properties that you can put up for rent or lease. You can gain profit as long as someone’s renting your property.
In net lease investments, lessees are required to pay all expenses, including regular monthly taxes, bills, and property insurances, related to running or maintaining the leased properties. The lessees are bound by contract so investors are ensured that they don’t have to worry about these additional maintenance costs. Since the lessees are the ones using the property, house, or condominium, it’s only apt that they pay these expenses.
There are three types of net lease investments in the market nowadays: single, double (NN), and triple (NNN). Single net lease or N lease is the least common type of agreement. In this setup, the tenant is the one responsible for paying property taxes aside from the base rent of the unit. The property owner is the responsible for other operating or maintenance expenses.
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In double net lease investment (NN lease), the tenant is still responsible for paying the property tax and base rent in addition to the building or property insurance. Expenses regarding fire, earthquake, and other potential hazards to the building are still managed by the tenants or lessees. The property owner only pays for expenses for possible structural repair and maintenance of the common area.
The triple net lease investment (NNN lease) is the most popular kind among the three. This arrangement holds the tenants or lessees responsible for all expenses regarding operation, maintenance, and repair of the property aside from the basic rent. This is more popular in malls and other commercial properties than in residential ones.
Those who are looking for investment strategies may find a net lease investment ideal for them. This arrangement may appear to put tenants at a disadvantage, but it actually provides them, as well as the investors, benefits over other investment options. Having a property in a good commercial or residential location will surely earn you profit in the long run.
If you have questions, please visit us at www.NetLeaseCapital.com for complete details and answers.
Article from articlesbase.com
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