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What is triple net lease?

Updated: 9/14/2023
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Jdnirvana

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12y ago

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A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common area.

This form of lease is frequently used for commercial freestanding buildings. However, it has also been used in single family residential rental real estate properties.

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Related questions

Does tenant has to pay utilities charges Under triple net lease .?

Triple Net Lease - with a triple net lease the tenant pays a base rent, taxes, insurance and also any charges for repairs and maintenance of the property.


What commercial lease is not commonly used Triple net lease Gross lease Net lease double gross lease double net lease?

Rent based on a percentage rent.


Does the tenant pay depreciation under a triple net lease?

yes


What is a modified net lease?

The modified net lease is a compromise among the gross lease and the triple net. The landlord and tenant usually set up a divide of maintenance expenses, while the tenant agrees to pay taxes and insurance.


What is a net lease?

Triple net leaseA triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common area.


What is an NNN Lease?

NNN lease means triple net lease which is common in commercial leases. "Net Lease" is a term used to signify a lease structure in which the tenant or lessee is responsible for paying a portion all of the common expenses related to real estate ownership.


What is triple net?

A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common area.This form of lease is frequently used for commercial freestanding buildings. However, it has also been used in single family residential rental real estate properties.


As a triple net lessee do you have the right to ask the landlord for copies of invoices for common charges as proof of what he is charging you?

Your rights as a tenant are limited to what is in your lease. Most triple-net leases give the tenant the right to "audit" the landlord's books to verify invoices for common charges. So, the answer is "Usually -- but you have to read the lease to find out."


Do you need money down for a triple net lease?

There is no law requiring money down on a triple net lease, so any required down payment would be up to your landlord. Keep in mind that you will need to start paying property taxes, building maintenance, tenant improvements, etc. immediately after you sign the lease. Those expenses can add up quickly, so be sure to have sufficient funds set aside before signing the lease.


What is the definition of the phrase net lease?

One will find that the definition of the phrase net lease is something that is most commonly associated with commercial real estate. A net lease is a form of pass through lease. One example would be where the taxes are associated with the said property.


What is a service lease?

Service versus Net lease. In a net lease the lessee has the responsibility to maintain the asset. In a service lease, the lessor provides the maintenance. By bundling a maintenance contract and a lease, the lessor provides an effective bond that maintenance will be performed.


What is triple net in real estate?

The triple net in real estate is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three "Nets") on the property in addition to any normal fees that are expected under the agreement, rent, utilities etc.