Paul Lorenzetti (717) 304-9524	RE/MAX of Lebanon County 1518 Cumberland Street Lebanon, PA 17042 (717) 270-8808	Steven Levengood (717) 821-3837

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Berks, Dauphin, Lancaster, Lebanon and Surrounding Counties

 

RE/MAX of Lebanon County

Triple Net Lease

A Triple net lease (also referred to as Net-Net-Net is a lease agreement on a property where the tenant or lessee agrees to pay all Real Estate Taxes (Net), Building Insurance (Net) and Common Area Maintenance (Net) on the property in addition to any normal fees that are expected under the agreement (rent, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with repairs or replacement of the structural building elements of the property.

Although rents are usually lower in Triple net leases than other forms of lease agreements, this form of lease agreement is desirable for real estate investors since the expenses incurred on the investor are dramatically decreased due to the transfer of financial responsibilities on the property from the investor/lessor to the lessee. But they may also have certain tax disadvantages for the lessor.