As compared to other types of leasable properties, the Triple net properties are surely the most rewarding ones for the investors.
Where it is widely anticipated from the Triple net properties to be a source of a thick yet fixed income for the owners, there is rarely a mention of all those fulfilments by such a property that make it a profitable investment. Before we dig into the get-away points of a profitable Triple Net property, it is useful to have a look at the reason behind people going all crazy for investing in it:
- Being an investor of a Triple Net property means you earn an entire hassle-free month of comfort. With all the responsibilities on the tenant, you can simply relax once you have had your rent.
- Because an investor is not entitled to make up for the sudden construction flaws and other maintenance-related problems, the Triple Net properties keep the investors from having to spend money right in the middle of the month with declining balance.
- Triple Net leases are like long-term contracts. Hence, the investors don’t have to worry about their commercial properties getting left by the tenants every other day. This reduces the burden on the investors in terms of finding good tenants all the time.
Most of the financing investors fail at getting any good profit out of their years-long investments in the Triple-N properties. This is because they don’t take care of the most important aspects of a Triple Net property before investing in it.
Here are some of the most important features of a Triple Net property that make it desirable enough to be leased on long terms and on high value. Because the desirability for such a property ultimately accounts for a higher income for its investors, these points must act as a guide for anyone planning to invest in a Triple N property
1- Select a Good Location
While it is important for all kinds of leasable properties to have a good geographical location
associated with their presence, it is mandatory for those being rented on a triple N basis. Before you invest in a Triple N property to rent it further, make sure that it is located in one of the best vicinities of your city in all manners possible. It is also pertinent to ensure that this property is on a reasonably small distance from markets, highways, and all other points of social value.
2- Design a proper lease agreement
If your lease agreement is not detailed enough or misses a few important points, it can make it your responsibility to do something in the future that a typical triple N owner is not entitled to do. Therefore, do not worry about the length of such a contract and add all that your deem necessary before finally getting it signed.
3- Finding the right tenants
A good tenant has a number of characteristics but in the case of Triple N properties the most
important becomes the time duration for which he or she stays. Because it is a commercial
investment, make sure that your tenant is reputable and has no loans on him.