Have you ever imagined owning a property and having people pay rent for it, but you don’t have to deal with all the headaches and hassle of owning one? Owning a property to be rented is excellent, but sometimes when you deal with an annoying and irresponsible tenant, it will give you more migraines compared to what they’re paying you. Not to mention the burden of paying taxes and insurance.
But nowadays, with the development of the renting system, some options will allow you to have an easier time owning and renting a property. And while it might be harder to find the tenant, it’s possible to have an almost 100% passive investment from owning a property. That’s by having a net lease investment over your real estate.
What Is Net Lease Investment?
Net lease investment in real estate is an agreement between the building owner and the tenant. In this agreement, the tenant signed to pay some or even all the net expenses of owning a property. It means that as an owner, there will be less risk involved, less work needed, and less headache to deal with.
If you’ve owned a property before, you must have known that the three significant expenses of owning a property are: property taxes, property insurance, and maintenance plus utility costs. Net lease means the tenant will be responsible for some or all those expenses when renting your building.
There are quite a few types of net lease investment, but the most popular one is called the Triple Net Lease or NNN.
What Is Triple Net Lease (NNN)?
NNN from the triple net lease is simply the three Net expenses that the tenant has to deal with: property taxes, property insurance, maintenance, and utility costs. Having your property listed as a triple net lease means that your tenant will be responsible for paying all those big expenses plus the rent fee.
In a triple net lease, all you’re responsible for are the maintenance of the outdoor physics of the building, which includes the roof, walls, and parking lot. At the same time, all the indoor maintenance of the building is under the tenant’s responsibility.
The money you will get from a triple net lease rent might be lower because the tenant will have to deal with all the hassle. But, in hindsight, if you have capital but don’t have time to deal with the hassle of owning a property, this is an excellent option for you.
Why Triple Net Lease (NNN) Better Than Bonds?
Some people might still think Bonds are a better option because they have a lower risk and a more certain ROI. But there are many benefits of investing in triple net leases rather than Bonds. Here are the three reasons why a triple net lease is better than Bonds.
Triple Net Lease Has Higher ROI
Triple net lease investment has a better ROI than Bonds. It requires a bigger capital because an excellent triple net lease property will have a significant market value. But owning a triple net lease will give you a higher income than Bonds when you have the money for it.
Triple Net Lease Don’t Care About Interest Rates
One of the primary concerns of investing in Bonds is that the fluctuation of the interest rates directly influences it. Especially nowadays, where we know the stability of our financial system is shaky, investing in Bonds can be pretty risky. But you don’t have to worry about interest rates anymore if you invest in a triple-net lease property.
Triple Net Lease Are Best For Diversification
The last upside of investing in triple net lease over Bonds is that its constant recurring income is best for investment diversification. When diversifying your portfolio, you want one or some of your investments to be stable for a long time. And that’s precisely what a triple net lease investment can give you.
Interested In Finding An nnn Property For Sale?
Now, with all the benefits the triple net lease gives you, especially how it’s better than Bonds, Are you interested in finding an nnn property to invest in yet? If so, hang tight because we have the best platform for you to start.
In the NetLeaseWorld, you can choose any NNN property for sale to invest in from many great locations in California, Florida, New Jersey, New York, Texas, Orland, and Tampa. We’ve listed the best NNN property for sale out there, and the best part? We’ve given you our opinion on the price compared to the local market.
Call us today, and let’s discuss your triple net lease options.