Change phrase in the Triple Net Lease Agreement in a few clicks

Aug 6th, 2022
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How to change phrase in the Triple Net Lease Agreement

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so I did my first triple net lease last week Im standing in front of a building that I own its six commercial units zero residential all commercial units Ive owned this building for a little over three years now and man have I missed out on tens of thousands of dollars by not using the triple net strategy but hey just like anything in life you live and you learn I didnt know about triple net I didnt know how it worked until now so here is what a triple net lease triple net means that the tenant basically pays for everything so they pay a base rent they also pay a portion of taxes they pay a portion of insurance and they pay a portion of grass they pay a portion of snow removal they pay a portion of basically all the expenses except maybe the roof the HVAC and the structure of the actual building so theres five units exactly the same theres one unit thats a little bit bigger than the other one but previously on the five smaller units we rented them for 850 a month now were gett

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Definition: A net-net-net lease is a type of lease agreement where the lessee (tenant) is responsible for paying all property expenses, including taxes, insurance, and maintenance costs, in addition to the rent. This leaves the lessor (landlord) with an amount that is free of all claims.
The NNN lease is computed as the sum of base rent amount, property maintenance charges, tax, and insurance divided by the total number of months in the year, i.e., 12.
NNN Triple Net This type of lease rate includes the base rental rate plus the three Ns. One N stands for property taxes, one for property insurance, and the final N stands for common area maintenance (CAMs).
In a NNN (triple net) lease, OpEx is a pass through of operating expenses to the tenant and is paid on a per sq. ft. basis. OpEx covers property taxes, property insurance, and CAM (common area maintenance) expenses.
A modified net lease is a negotiated middle ground between the gross lease and the triple net lease that can be used to make deals more favorable for tenants and still protect the interests of the investor by splitting some of the property expenses.
Triple net lease (NNN) is normally a commercial lease where the lessee pays rent and utilities as well as three other types of property expenses: insurance, maintenance, and taxes.
Triple net leases, though popular in commercial real estate, arent without a few drawbacks. The main concern for a tenant is the higher monthly costs as opposed to those in double or single net lease structures.

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