Are you tired of the stock market crashing continuously? Don’t wish to lose money? Earn with triple net lease without any responsibility.
We all know how volatile the stock market can be. Given the stock market history, we can understand that it has always been at the mercy of political predictions, economic factors, laws, and perceptions. All of these factors combined can increase volatility in share values, and individuals have no real asset to rely upon or preserve their income.
Stocks and bonds investment just give an individual a piece of paper, promising repayment and income in return. If the market crashes, the person can lose a lifetime of their wealth. People have no control whatsoever over what could be the outcome of a stock market. There is no guarantee, no stability with the stock market, and if there is political unrest going on around, then it’s not hard to believe that a person has said all but farewell to their money.
However, stocks offer liquidity but at what cost? Would you wait for the market to turn all right or better shift towards an alternative? Net lease is the new dark horse, and people are embracing this replacement to bonds and stocks with both hands. But what is it really?
What is a net lease?
A net lease is a commercial lease where a tenant is responsible for paying all or a portion of taxes, insurance, utility bills, and maintenance costs along with the rent of the building. The income is fixed and guarantees stability for a landlord who is not responsible for paying any expenses after leasing the property. However, a net lease is categorized into further “nets.”
Types of net leases
There are three types of net lease properties. We have listed out there features here. Check them out.
1. Single net lease
A single net lease involves leasing a property to a tenant who is only responsible for paying the building taxes and rent. The other costs of utilities and maintenance fall upon the landlord. Most owners add the taxes in the rent so that the lessee cannot default on the tax payment. However, this is the least common type of net lease used in a contract.
2. Double net lease
The second type of contract is called a double net lease, where the tenant is responsible for paying the taxes, insurance, and rent for the building with the maintenance or repair cost paid by the lesser or landlord.
3. Triple net lease
In a triple net lease, the tenant agrees to pay all three nets: taxes, insurance, maintenance cost, and any utilities along with the rent. It is the most common type of lease used in real estate investment and absolves the landlord from all responsibilities of paying any kind of cost. Triple net leases last for five to ten years usually, so a tenant can try to get out of paying higher maintenance costs. But most landlords use a kind of bondable net lease that cannot be terminated before its closing date.
