Triple net properties are a hot commodity on the real estate market. They represent one of the few long term investments that requires very little management and upkeep on the part of the investor, because they are the only type of lease that puts all expenses – including insurance, repairs, and general maintenance – in the hands of the lessee, rather than the property owner.
But the benefits of triple net properties do not end there. The following are four major reasons why triple net properties are a great choice for the modern commercial real estate investor.
Reasons to Use Triple Net
- No Maintenance
By definition, a triple net lease is one that requires the lessee to cover all form of maintenance. This includes not only major repairs, like a broken roof, but also the lesser needs like pest control, carpet cleaning, and more. The lessee pays utilities, they pay property taxes – they pay for everything, and the investor’s role is to simply sit back and collect.
- Long Term Lease
Triple net properties generally sign businesses on a long term lease, which means that you’ll be able to continue to collect rent for years – sometimes even decades. Properties that house multiple businesses or use only short term leases tend to require a lot of marketing and effort in order to rent the property again. Not so with triple net properties.
- Inflation Protection
Even though the renter is signed to a long term lease, these leases usually have clauses that gradually increase rent over time. That allows you to protect yourself against inflation and continue to profit off of the property as rent prices go up. Your property will still be able to pay for itself, and you’ll be able to receive an amount that you deserve for your triple net property.
- Great Lessees
Because not everyone can qualify for triple net leases, the ones that do are often outstanding tenants. Many are AAA rated businesses that could purchase a property outright but prefer to free up capital for future investments. Companies like WalMart, Riteaid, Starbucks, Jack in the Box and more are all companies with a very high credit rating that make great, reliable tenants.
Moving Your Triple Net Properties Forward
There are many reasons that a triple net lease is valuable to the property owner. If you want to go a step further and turn your triple net property into one lump sum of cash, sign up with CRE Lender today. CRE Lender is the number one source for connecting borrowers to the lenders that want to fund them, and through CRE Lender you can turn your triple net property into a lump sum that you can spend at your leisure. Find out more today.
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