Net Lease 101
A net lease requires the tenant to pay, in addition to rent, some or all of the property expenses that normally would be paid by the property owner, including real estate taxes, insurance, maintenance costs and utilities. Typically, net lease assets tend to be single or multi tenant, free standing buildings that house businesses such as banks, small format retail and fast food restaurants. Many investors are looking for a safe place to put their money with the wild fluctuations in the financial market. Stable, predictable investment vehicles that yield a passive income stream are increasingly hard to find, but smart investors do have choices. One of the better choices is to invest in absolute triple net lease properties. A triple net lease (triple-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three "nets") on the property in addition to any normal fees that are expected under the agreement (rent, utilities, etc.).