The Triple Net lease, also known as the “Triple N”, transfers responsibility for three payments to the tenant in addition to the rent. The tenant pays for the maintenance of the building, insurance and property taxes. This agreement can have benefits for both parties, as the rent is usually lower with this type of lease than with gross or percentage leases. Lower rents make it easier to find tenants, so the landlord is less likely to have a vacant building. If the building is in good condition, maintenance is minimal and the tenant benefits from a lower rent. If the building is dilapidated, e.B. needs a new roof, the owner has the advantage because he has no maintenance costs. However, this scenario depends on whether the tenant keeps the property in good condition. A Triple Net Lease (Triple-Net or NNN) is a lease of a property in which the tenant or tenant agrees to pay all property taxes, building insurance and maintenance (the three “networks”) on the property in addition to the normal fees provided under the contract (rent, utilities, etc.). With such a lease, the tenant or tenant is responsible for all costs associated with repairing and maintaining a common area (also known as CAM – Common Area Maintenance). CAM fees are usually negotiated in advance in the form of a fixed number of dollars per square foot. A Triple Net Lease (NNN) is a commercial lease in which the tenant agrees to pay a basic rent amount and the net amount of the owner`s property taxes, the net amount of building insurance and the net amount of maintenance costs of the common area.
In practice, almost all NNN leases are a little different and divide the responsibilities between the landlord and the tenant in a slightly different way. Due to the variations, it is important for a tenant to pay close attention to the NNN lease offered to him by a potential landlord. When maintenance costs are higher than expected, tenants often try to get out of their leases or obtain lease concessions under triple net leases. .