NNN Charges

NNN Charges – Realty Professionals  805-473-0300

NNN = An acronym that stands for Triple Net Lease.

This form of lease agreement is almost always related to a commercial property. Consisting of a landlord and tenant relationship. A NNN lease agreement consists of the base rent price plus the addition of triple net terms.

The NNN entails in costs due in addition to the base rent, therefore the tenant is also responsible for the following costs…

N#1: Property Taxes – The tenant is responsible for the real estate taxes throughout the term of their lease. This is traditionally only the portion of the real estate the tenant uses. So, for example in a multiple tenant property, lets say there are three tenants total. Therefore the total property tax bill costs may be split equally between all three commercial tenants. Often times the landlord pays the tax bill, however charges the tenants the cost of the tax bill, respectively.

N#2: Building Insurance – Let’s assume similar circumstances as above. Of the total property insurance policy; each tenant is responsible for the costs of their portion of the building.

N#3: Property Maintenance & Repairs – Simply each tenant is responsible for the costs of their portion of the maintenance and building repairs. Often times this ensures that the building remains in good condition throughout the term of the lease.

For more information call Kevin Jones today at 805-473-0300

Realty Professionals 805-473-0300

For more information call Kevin Jones 805-473-0300 today.

 

 

 

 

 

 

 

 

 

Kevin Jones, Broker Lic#01128892
Realty Professionals, Corp. Lic#01892221