Posted by chris on January 17, 2003 at 18:00:53:
does that mean i have to pay for insurance on his building in case of a fire or some other problem. and am i paying his real estate taxes on the building or just the property taxes on the contents that i own in the building to run my business. doesnt he have to insure the structure he owns it and pay the real estate taxes.
explanation on triple net lease - Posted by Juan
Posted by Juan on July 27, 2002 at 10:55:24:
could someone explain me what is a triple net lease, net lease or single tenant nnn property.
Re: explanation on triple net lease - Posted by ray@lcorn
Posted by ray@lcorn on July 27, 2002 at 15:33:47:
Juan,
For a lot of information about triple net leases, search the archives for “triple net.”
Triple net (aka NNN) refers to a lease in which the tenant pays all property taxes, insurance costs and maintenance costs in addition to the rent amount due to the landlord, making the rent “net” of any these costs.
As the term is most often used, it refers to single tenant properties that the tenant also performs the maintenance function, and the only landlord responsibilities are the roof and structure.
Some multi-tenant centers advertise triple net tenants. But in almost all cases the landlord is performing the maintenance and paying the tax, insurance and maintenance expenses and recovering them from the tenants through Common Area Maintenance fees (CAM charges) in addition to rent. These are “net leases” as well.
The distinction is one of value. Those properties in which there are no or reduced landlord responsibilities are valued at a premium to those in which the landlord must perform and then collect the costs after the fact.
You will also see “net net”, meaning the tenant pays the property taxes and insurance in addition to the rent amount due.
ray
Re: explanation on triple net lease - Posted by chris giotsas
Posted by chris giotsas on January 17, 2003 at 17:01:23:
on a tripl net lease NNN does the tenant pay the insurance on the building itself and the property tax on the building or is that the landlords responsibility
Re: explanation on triple net lease - Posted by ray@lcorn
Posted by ray@lcorn on January 17, 2003 at 17:39:59:
Chris,
As I stated above, in a NNN lease the tenant pays property insurance; property taxes, and; all maintenance costs. It is also customary for the tenant to be required to name the landlord as additional insured on it’s (the tenant’s) liability insurance.
In a true triple net lease, the only landlord responsibilities are generally the roof and structure.
ray