In a Triple Net Lease (NNN) investment, the responsibilities of the landlord and tenant are quite different from a traditional lease. In an NNN lease, the tenant is responsible for paying for most, if not all, of the property expenses in addition to the rent. These expenses typically include real estate taxes, insurance, and maintenance costs.
Here are the general responsibilities of the landlord and tenant in a Triple Net Lease investment:
- Maintaining the building’s structure: The landlord is responsible for keeping the property’s structural integrity and ensuring that the building meets all safety and building codes.
- Lease Administration: The landlord is responsible for drafting, negotiating, and executing the lease agreement with the tenant.
- Providing utilities: The landlord provides utilities such as water, gas, electricity, and other essential utilities to the property.
- Collecting Rent: The landlord is responsible for collecting rent from the tenant.
- Paying rent: The tenant is responsible for paying rent to the landlord.
- Paying property expenses: The tenant is responsible for paying for property expenses such as real estate taxes, insurance, and maintenance costs.
- Maintaining the property: The tenant is responsible for maintaining the property and ensuring that it is in good condition.
- Complying with building codes: The tenant must comply with all building codes and safety regulations applicable to the property.
It is important to note that the responsibilities of the landlord and tenant may vary depending on the specific terms of the NNN lease agreement. It is recommended that both parties thoroughly review and understand the lease agreement before signing it.