Triple Net Lease Agreements
A lease triple net Virginia residents choose, also known as an NNN lease is a type of real estate agreement which requires the tenant to be responsible for all ongoing property expenses. This includes property tax, building insurance, maintenance, utilities, upkeep, and rent. Essentially the tenant is responsible for the burden of the property and anything that might happen to it while they are renting. Triple net leases remain popular because they are typically associated with prime real estate locations.
In general you should never attempt to arrange a triple net lease without first talking with a company that offers investments such as triple net Virginia locals recommend.
Considerations of a Triple Net Lease
A triple net Virginia community members rely on is not for every tennant. If you don’t understand the fees involved, or there are unexpected charges, you could risk going out of business because you cannot afford the operational costs. Examples of charges that you could be responsible for include:
- Property Taxes – When a landlord has owned a building for decades, they may pay very little in property taxes. If they sell the building to a new owner, and this person/entity retains the triple net lease structure, you may now be obligated to pay significantly more in property taxes.
- Common Area Maintenance – The tenant will be responsible for maintaining driveways, parking lots, lighting, landscaping, and so forth. The estimated cost versus the actual cost can be dramatically different.
- Building Maintenance and Repairs – A triple net lease will hold the tenant responsible for all upkeep, repair, and maintenance of a property. This includes the interior premises, structure, plumbing, roof, and so forth. It also will require the tenant to meet any new building codes, should new legislation be put through. It is possible for a landlord to pay for these costs, but they will be proportionally rolled into your reconciliation costs.
- Reserve Accounts – Some landlords will create a reserve account in which a portion of the monthly rent will put put aside for prospective future repairs. This means you may be paying for a controlled fund that will assist in any future maintenance. Depending on your own circumstances, this could be beneficial.
Rights of the Tenant
Apart from triple net leases being in great locations, tenants like these agreements because they have the right to audit. What this means is that before you pay for changes in actual vs. estimated costs, you are able to audit and question the landlord about the changes and fees. This accessibility gives you, an agent, or lawyer the opportunity to review invoices, bills, changes, and so forth to ensure there are no errors, fraudulent actions, or disputable issues involved. In doing so the tenant can feel confident in knowing they are getting exactly what is laid forth in the lease.
Seeking Advice About Triple Net in Virginia from a Qualified Agent
There are many other advantages and disadvantages to this type of lease agreement that triple net Virginia investors often prefer over other options. These can, and should, be further discussed with a Virginia triple net real estate agent from Calkain. Our associates would be happy to go over your property needs and let you know what your best options might be. On the other hand if you are a property investor looking to make a commercial real estate purchase, we can help. Call Calkain today at (703) 787-4714 to find out more about triple net Virginia offers.Triple Net Virginia