What is a Triple Net Lease?
A triple net lease, a type of commercial leasing agreement, is a lease where the tenant pays the insurance, maintenance, taxes and rent. There are pros and cons associated with a triple net lease for both the tenant and the landlord.
Prior to making a decision, individuals should carry out extensive research about the triple net lease. Often times, a triple net lease is referred to as a true net lease as usually the landlord has no responsibilities related to the upkeep of the building. This is the reason why a majority of commercial landlords prefer triple net leases over any other type of lease. The terms of a triple net lease agreement are individualized to the lessor and the tenant. These may include stipulations and restrictions to protect both the parties involved in the agreement.