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What is the downside of a triple net lease?

Cons of Triple Net Leases For landlords who are locked into a long-term lease, they lose the ability to increase the rent if property values in the area increase. In the long-term, this can limit earning potential.

Why is NNN lease a good investment?

NNN is a good investment vehicle because its a source of passive income with minimal responsibilities for the landlord. Tenants also benefit from a lower base rental rate than a gross lease agreement.

What are the major types of lease?

The three most common types of leases are gross leases, net leases, and modified gross leases. The Gross Lease. The gross lease tends to favor the tenant. The Net Lease. The net lease, however, tends to favor the landlord. The Modified Gross Lease.

What are the 3 main types of lease?

The three main types of leasing are finance leasing, operating leasing and contract hire. Finance leasing. Operating leasing. Contract hire.

What is meant by triple net lease?

Primary tabs. 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.

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