Introduction
Triple Net (NNN) leases are a popular choice for passive real estate investors, but they aren’t for everyone. Here’s what you need to know.
Pros of NNN Leases
✅ Minimal Landlord Responsibilities: Tenants handle property taxes, insurance, and maintenance.
✅ Long-Term, Stable Income: Most NNN leases are signed for 10+ years, reducing turnover risks.
✅ Predictable Cash Flow: Fixed rental increases over time help investors plan long-term income.
Cons of NNN Leases
❌ Lower Rental Rates: Compared to gross leases, NNN properties may have slightly lower rental income.
❌ Tenant Risk: If a tenant defaults, the landlord may struggle to find a replacement.
❌ Less Control: The landlord has limited say in property modifications and maintenance.