Picture this: You own a commercial property, and you want to rent it out. But you’re tired of property ownership. You want to profit off of your investment, but you don’t want to deal with the hassles of maintaining that property. You want to be able to go about your day with that property as the last thing on your mind. What do you do?
You can sell the property, but now may not be the right time. You can pay someone else to manage the property, but doing so may take away some of your revenue. Instead of either of those strategies, you may want to look at a triple net lease.
Definition of Triple Net Lease
A Triple Net Lease is a lease where the tenant/lessee pays for the three “nets” that most property owners pay on a property: insurance, maintenance, and property taxes. These are the payments that never end, no matter when you’ve paid off your mortgage, and the three payments that do not technically go back into your property.
Triple net leases have many advantages. But the greatest advantage to finding someone to take on one of these leases is how little the property owner has to do, other than collect the rent check. The lessee covers everything:
- The roof if it breaks.
- The insurance on the property.
- The fees associated with property ownership.
If anything comes up – anything at all – that leads to an expense, it is covered by the lessee and the property owner needn’t concern themselves with it. In many ways, the lessee is like a buyer, except by the time their lease is over, they will not own the property.
Defining Triple Net for Consumers
Triple net lease’s definition can be challenging at times because it’s not a simple lease to get. You have to find the right company to qualify for this type of lease and you need to make sure that you have a property that makes sense for this type of lease to be worthwhile.
But when you do qualify, a triple net loan can be an incredible tool for making sure that you are able to profit from a property with minimal involvement of your own. And if you are able to acquire a triple net lease, you may be able to profit even further by applying for a triple net lease loan – a loan that will allow you to collect all of the money that will be owed to you in full, so that you do not have to wait years for your lease to pay off.
To find out more about these types of loans, sign up with CRE Lender today. We connect commercial property owners like you to lenders that are happy to provide you with a valuable low interest loan. Sign up today to find out more.
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