Triple Net Lease

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Triple Net Lease In a triple net lease, the tenant pays for building maintenance, property insurance, and property tax in addition to monthly rent. A triple net lease is a commercial lease agreement in which the tenant is responsible for three expenses in addition to rent: -Building maintenance -Property insurance -Property tax To accommodate the additional expense, a triple net lease typically has a lower base rent than a standard lease (also known as a gross lease). Triple net leases are not common in residential real estate. However, they are common in commercial real estate, particularly in multi-unit structures such as strip malls. A triple net lease is also known as an NNN (net, net, net) lease. Triple Net Leases Often Come With Specific Insurance Requirements. The tenant typically must carry general liability insurance and property insurance at a minimum. A small business with a low risk profile may be eligible for a business owner’s policy, which bundles these two types of insurance together at a discounted rate. Double net and single net leases In addition to a triple net lease, a commercial renter may encounter a double net lease, in which the tenant is responsible for property tax and property insurance as part of the rental agreement. There is also a single net lease, in which the tenant pays for property tax in addition to the monthly rent payment. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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