How Triple Net Leases Work

We started in residential properties then moved into commercial and finally found the niche of triple net leases. It was some thing we realize we wanted to get into when seeing just how much work it was to deal with hotels, apartments, and single-family homes.

There is a lot of unpredictability with these forms of real estate and on top of that you’re constantly responding to phone calls and tenants. With these types of leases you have expenses that completely fluctuate. Tenants move out and damage is done that we have to repair, so we are left to turn those units around. 

However when we found triple net leases, we found out that the tenant has to take care of the maintenance from with the walls in. Wow, as a landlord the most that you are responsible for is the roof or the parking lot.

Because we know exactly what we are responsible for we can budget for those and said that money aside, instead of having unpredictable factors change your budget. 

Reserves can be set aside with triple net leases and the rest can be used for distribution and profit. it is predictable with a steady incline and we know what the income is going to be.
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