LONG TERM LEASE INVESTMENT.
Commercial Landlord property owners prefer it right when a tenant not only pays for the rent of the property but also incurs the cost of maintance of the property or any relevant insurance taxes, this is what is known to as net lease investment. Being along time project in nature it helps the tenant to budget well for his business and gives the landlord rest since he does not have to mind about repairs of the property at all since this will be catered for by the tenant. It is also good to note that most leases of commercial property are triple net investment or double net investment, the difference of triple net investment and double net investment being the responsibility of the tenant to make replacement if need be of roof and parking lot, where in double net investment that responsibility lies with the landlord of the property.
If an investor is not interested in purchase of shares he can prefer going to this kind of investment, or even team up with another investor to form a partnership and buy this investment this will help the investors spread the risks among them and share the illiquidity challenge of this investment together. Knowing the right lease to take can be a challenge. Therefore it is okay if any investor considers some factors.
Considering whether straight lease agreement compared with triple net lease investment is the same, obviously it should be three-pronged lease agreement should be very cheap as computed on a monthly basis. One should make sure that average monthly rental prices are not over passed even after paying ownership costs. Searching on the internet can provide some help to find a well reputable and experienced firm that offers triple net investment since this is some of the factors consider.
Since the tenant is responsible for doing landlord responsibilities like repairs and purchasing insurance and maintenance of the property, this gives the landlord a break from managing the investment. A good income will be expected by the landlord for a very long time that is the time the tenant has leased the property without fail, this will help the landlord make other investment and plan keenly. Time and money is what it takes for managers to do their administrative jobs, when an investor decides to triple lease his property he will have a lot of saving since he will not be responsible for managing the property he will be just receiving money from the investment and enjoying the fact that his investment is appreciating day by day,