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Add initials Triple Net Lease Agreement

a triple net lease is a type of lease agreement that's entered into between an owner or manager of commercial property and a tenant we'll go over everything you need to know about triple net leases as well as tell you how to get a free lease template triple net leases are commonly seen with retail industrial and free standing buildings when written out it looks like this the three ends stand for net net net how the ends relate to the contract is this in a triple net lease the tenant is responsible for payments on what's called the three nets property insurance real estate taxes and common area maintenance how expenses are paid costs of the three nets are usually estimated for the year and incorporated into a rent on a monthly basis at the end of the year if the costs were lower the tenant gets a refund if they were higher than previously estimated the tenant would then owe the difference it's important to note that most tenants will usually request the triple net amount to be capped based on the expenses for the previous year moreover the three nets are not the only expenses that tenants are expected to pay utilities repairs and other services are all normally the tenant's responsibility pro rata share if the building or space is shared tenants are responsible for their share of expenses based on the square footage they occupy for example if the tenant is located in a 10 000 square foot shopping center and their space is only a thousand square feet the tenant would be responsible for 10 percent of the triple net expenses what are the landlord's responsibilities in a triple net lease with this type of lease the landlord generally covers the following maintaining the parking lot and common areas although the payments for maintenance will fall under the tenant's responsibility roof and structure of the building maintaining irrigation systems and updating signage why use a triple net lease generally a triple net lease is known for being a fixed arrangement with minimal rent increases there are some pros and cons to the arrangement when it comes to being a landlord pros leases are usually long term expenses are controlled and it provides a fixed income cons the landlord must track the expenses rent increases are minimal in most cases if built to suit there is high exposure if the tenant defaults were eforms the world's biggest online database for legal documents we have already created a complete triple net lease agreement template and it's ready for you to download for free at the link below get it now and make your contract in just a few minutes