Triple Net Properties Virginia

We Know Virginia Net Lease

A triple net lease can be an advantageous arrangement for the tenant as well as the landlord. In Virginia, both parties can benefit from triple net leases in different ways. If you are considering a triple net lease as an investment, talk to an investment professional at Calkain. We are Virginia based and extremely knowledgeable about lease agreements throughout the state and can help you decide if this approach is the best one for you and your portfolio’s future.

Triple Net Lease

In a triple net lease, the tenant is responsible for paying the operational costs in addition to their monthly rent. In addition,  the tenant must pay for maintenance of the commercial building, property taxes, and property insurance. In this way, triple net properties in Virginia can equate to less overhead for investors.

A tenant’s rent tends to be lower with a triple net lease when compared to a standard or gross lease. Lower rental rates can make it much easier for a landlord to find and approve tenants. The landlord is taking less of a risk by approving tenants with higher credit. The triple net lease is set up in a way where the landlord can make a more consistent and reliable profit.

Maintaining the Building

A commercial building in excellent condition should mean the maintenance costs for upkeep will be less for the tenant. However, if the building needs one or more substantial repairs (new roof, piping, structure, etc.) then the tenant may face a huge financial hit. Before getting involved in a triple structure lease, tenants should seriously consider whether they are able to pay for any necessary or upcoming improvements for the commercial building. As the owner of triple net properties in Virginia, it will be in your best interest to choose tenants with sufficient cash flow and credit for such unexpected expenses.

Unexpected maintenance bills can cause a business to fail if they are not prepared for such costs. As the landlord, you may decide to create a reserve account which sets aside a portion of rent to help pay for repairs and improvements. Your Calkain representative may be able to provide you with additional tips if you are considering investing in triple net properties in Virginia.

Tenant Insurance and Property Taxes

Tenants must keep a copy of their property insurance in the building at all times. They also have to pay for policy deductibles if an accident occurs. The commercial tenant has the duty to pay the property taxes, and as such this should be clear to them before they sign a lease. Some communities may increase commercial property taxes every year, meaning the tenant is faced with continually higher costs. The landlord has the option to contest the higher appraisal of the property taxes. This may be advantageous when owning one or more triple net properties in Virginia. 

Before signing on the dotted line of a NNN lease, we suggest consulting a professional at Calkain by calling us to schedule an appointment. If you are interested in knowing more about triple net properties Virginia investors choose, contact us today.

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Traci BidingerTriple Net Properties Virginia