| The term “Triple
Net Lease” means that the tenant pays for all operating
costs and expenses associated with the property it leases
for the duration of the lease.
This infers that the tenant pays for such costs
and Rates & Taxes, Insurance Premiums, Internal and External
Maintenance, Security, Cleaning, and the like. The only cost
that may still be paid by the Lessor would be Management Fees.
Fair wear and tear would be excepted and included
in a ‘Fair Wear & Tear‘ clause in the lease.
In a triple net lease, the rental component
is separately identifiable in the lease, making the actual
net investment return clear for property owners and investors.
The concept of a Triple Net Lease, requires
the tenant to assume full responsibility for the leased premises
on a fully maintaining and repairing basis. The landlord then
collects the net rental monthly
The Web Definition of Triple Net is:
Rent A lease in which the tenant pays, in addition
to rent, certain costs associated with a leased property,
which may include property taxes, insurance premiums, repairs,
utilities, and maintenance. There are also "Net Leases"
and "NN" (double net) leases, depending upon the
degree to which the tenant is responsible for operating costs.
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