Tenants often have just a small number of duties beyond paying the rent. They could also be responsible for paying the utilities if their landlords do not include them in the rent. Typically, the landlord must be responsible for hiring someone to do essential repairs and routine maintenance, such as roof repairs, lawn maintenance and plumbing.
However, some landlords believe that commercial tenants should be responsible for maintaining the very building they use in addition to paying utilities. Is it the responsibility of the landlord to maintain their property or should it be the tenants? Having a triple-net lease may decide how this works. Here is what you should know:
Understanding triple net leasing
A triple net lease is something that is frequently used in commercial real estate. Essentially, a triple net lease makes the renter pay rent, utilities and other expenses such as real estate taxes, property insurance and necessary maintenance and upkeep.
Of course, different “net” leasing arrangements can be utilized on commercial buildings. In a single net lease, for instance, the tenant is only required to pay property taxes in addition to rent and utilities. A double net lease also includes property insurance. In a triple net lease, the tenant is effectively responsible for covering practically all expenses.
How would a triple net lease help you?
A triple-net lease helps people who are investing in commercial real estate. It can also eliminate a few steps when owning commercial real estate. A triple net lease is not for everyone. Some landlords appreciate the control they have over their properties. Understanding your legal options can help you decide how to structure your commercial lease agreements.