NNN Leases in Florida

NNN Leases in Florida

A NNN Lease in Florida (otherwise known as a triple net lease) is a very popular choice among landlords, tenants and investors. These agreements are most often single-tenant commercial properties that are leased to tenants who have reliable credit. The NNN acronym stands for net, net, net and means it is the tenant’s duty to pay for property taxes, maintenance, insurance and other operational costs. In other words, the landlord has no responsibility for the operational costs of the property.

For those who are considering partaking in a NNN lease in Florida, you can rely on the knowledge of a professional at Calkain for advice and guidance.

Benefits of a Triple Net Lease

It can be tempting for many potential tenants to jump at the chance of a Florida lease type NNN. This kind of lease also appeals to landlords because it offers a more guaranteed income, less risk, and no management duties. The rent tends to be higher with a gross lease, due to the landlord’s responsibility of property expenses. The tenant takes on paying these expenses instead, resulting in a lesser rental rate. The tenant has more independence to take care of the overall property, including maintaining landscaping, common areas and fixing anything that breaks.

Risks of a Triple Net Lease

It is a good idea for tenants to take a realistic look at their finances and business plan before signing a lease type NNN in Florida. The tenant must take on a multitude of additional expenses that the landlord would normally pay for in a standard lease. If a tenant goes into such a lease unprepared for these additional costs, it can quickly lead to a business failing. Secondly, if estate taxes rise, your operational expenses will increase too. If a repair or building modification is needed, it can put a strain on finances.

 

Right as a Tenant to Audit

A tenant within a Florida NNN type of lease is able to view financial costs and statements in regards to the commercial property. If for any reason the tenant feels as though something is not right with their bill, they can submit an audit of their landlord before paying. Even with the best of intentions, it is possible for a landlord to commit an oversight or make a significant error when calculating costs.

Due to the many advantages and disadvantages of a triple net lease agreement, it is a good idea to consult with a professional at Calkain  so we can talk with you about your options first. Schedule your appointment with us to find out more about NNN leases. We have only the best of intentions when it comes to helping you decide if such an investment or business opportunity is right for you. Do not hesitate to contact us today about a NNN Lease in Florida!

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