Depending on where you live and the polices affecting the area that you are in real estate could entail a lot of things. A net lease is a lease in real estate where the tenant covers the rent as well as all or some part of cost associated with maintenance, usage or operation of the property. Janitorial services, taxes, utilities and property management are some examples of the usual costs that are associated with neat leases apart from rent.
Taxes, insurance and maintenance are the three main categories that the net lease cost are put into apart from the rent. There are different kinds of leases and it would do well for a potential investor to understand them before venturing into a new market. The the first category of the net lease is the single lease where the tenant will pay the rent and property tax. With a double net lease the tenant is supposed to pay the rent, insurance premiums and the taxes on the property as well.
The final category commonly known as the triple net lease or net-net-net lease requires you as the tenet top pay the rent plus all the costs associated with the property. With a single net lease the tent has very little risk passed on to them as they are only covering the taxes, these net leases are least common in the market. As much as the tenant is only paying the taxes in the single net lease, some landlord will ask the payment to go through them so that they can keep track of the taxes and certify that none has been missed.
As an investor you need to be aware that the net leases almost always favor the landlord. Negotiating the net leases is possible and as the investor you just need to understand the process and the tips on how to go about it. You will come to appreciate successful negotiating because sometimes your business will do well and at times it might suffer but with a well-negotiated rate you will be safe and view here for more.
Ideally the rent before the percentage of the usual cost should be less than it would be if you were to in a standard lease agreement. Everything falls on the research that the investor carries out, in consideration to that of the business, the details in the net lease need to be well evaluated before taking them click here. The most common alternative to net leases is a gross lease where payment is a flat agreed upon amount per month.