Triple Net Lease: Things You Need to Know!

1. Triple Net Lease: Things You Need to Know! Also termed as ‘NNN’ is a type of lease structure where the tenant or lessee agrees to pay the property's operations expenses. It also includes the standard area maintenance, property taxes, and also the insurance of the building. Their additional expenses are often referred to as additional rent. It is most commonly paid every month with the base rent amount. Common Area Maintenance These expenses are additional rent paid by the tenants to the landlord to cover the costs related to the overhead and operating expenses for the property's common areas. These common areas are the spaces that are used on a non- exclusive basis by any of the property tenants. Property Taxes These are collected by the local governments, which are based on the appraised value of the property. The tax collected goes in supporting public infra. Insurance It is the landlord's insurance policy to cover the financial cost of repairing and replacing where necessary. The landlord will include costs in the monthly rent. The commercial lease agreement mentions which type of lease agreement you will be getting into with the landlord. Understand the term carefully before signing the lease agreement.