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What does NNN in a lease mean?

What does NNN in a lease mean?

Triple Net Lease
What Is a Triple Net Lease (NNN)? A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. These expenses are in addition to the cost of rent and utilities.

Is triple net lease bad?

Drawbacks to a Triple Net Lease There is an inherent danger in using a triple net lease with regards to the unknown. Unexpected and substantial damage to the property could significantly increase your monthly maintenance and repair costs.

What is the difference between NNN and gross lease?

On the gross lease, the landlord pays all or most expenses associated with the property. Usually the monthly rent on an NNN lease is lower than a gross lease, but with an NNN lease you has a higher level of responsibility for the building itself.

What is the landlord responsible for in a triple net lease?

With a Triple Net Lease—sometimes referred to as “NNN”—the tenant assumes responsibility for all costs of the property, in addition to paying the rent. The tenant pays the utilities, real estate taxes, building insurance, and maintenance.

What you should know about the triple net (NNN) lease?

A Triple Net (NNN) Lease is a commercial lease agreement in which the tenant agrees to pay a base rental amount and the net amount of the landlord’s real estate taxes, the net amount of the building insurance, and the net amount of the common area maintenance expenses.

What does NNN lease mean?

An NNN Lease is a net lease, structured as a turnkey investment property in which the tenant is responsible for paying the three major expenses associated with commercial real estate ownership.

What is NNN real estate?

NNN is a type of lease structure when renting or leasing commercial real estate. It basically means that on top of the rent they quote you, you have to pay for your prorated share of property taxes, insurance, maintenance, etc.

What is a real estate lease?

Diffen › Finance › Personal Finance. In real estate, a lease is a contract for a specific period of time — often 6 or 12 months — after which the contract expires, while rent is the payment made under the terms of the lease. Real estate leases are also commonly known as “rental agreements.”.