What does Triple Net lease mean? - Posted by PBoone


#1

Posted by JohnBoy on October 08, 1998 at 20:31:29:

Another example,

The commercial building I lease is a free standing building. My “Base Rent” is $1800 which is “net rent” to the landlord. The taxes on the property run additional $367 per month. So my rent check is for $2,167 each month. If they’re any repairs or maintence that need to be done, I pay to have them taken care of or do them myself.

If I don’t take care of the repairs, the landlord would have the right to come in and have them done. Then I would get the bill to pay for it.

In shopping centers they usually have a maintenance company handle the repairs which are added into the common area costs. When ever something major needs to be done, the tenants in the shopping center would be assessed the cost according to the square footage of their store. The base rent will always be “Net Rent” to the landlord, except for their own personal income taxes. Nice huh?


#2

What does Triple Net lease mean? - Posted by PBoone

Posted by PBoone on October 08, 1998 at 19:48:16:

I have no idea what this means could some please give me a solid answer.
Thank you
Pat


#3

Re: What does Triple Net lease mean? - Posted by JohnBoy

Posted by JohnBoy on October 08, 1998 at 19:56:04:

It means the base rent is “Net Rent” to the Landlord. The tenant pays a base rent PLUS in addition to the base rent, the tenant pays for all taxes, repairs and maintenance, and insurance (usually refered to as common area expense). These types of leases are most common in retail centers.