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What Is a Triple Net Lease?

A triple net lease is a kind of commercial leasing agreement in which the lessee pays the taxes, insurance and the maintenance on top of paying the rent. A triple net lease has both advantages and disadvantages for both the lessee and the landlord so a person who is considering to get a triple net lease should make the necessary research in order to be well informed about what he is going to get into. This is especially important considering that a triple net lease's length, though it varies, can last up to 50 years.

A triple net lease is just one of many options for commercial leasing that is available to an individual. For example, a gross lease arrangement means the lessee will pay the rent while the landlord has the responsibility of taking care of all the other things like maintenance. A double net lease, on the other hand, means the landlord will have responsibility for parking, temperature control systems and the structure itself. A triple net lease (also called a true net lease) will shift all of the responsibility to the lessee. The landlord has no involvement anymore. It’s the reason why many landlords actually prefer this arrangement. The landlord can generate a lot of income while the tenant maintains the condition of the property and even making improvements. The tenant also gets benefits because he enjoys the advantages of being an owner of the property but without having to shell out a lot of money, which happens with acquiring property.

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