Benefits of Investing in Net Lease Properties
Net lease properties are stable and usually long-term investments for real estate investors. This is because of the lease structure with credit-worthy tenants. Most net lease properties are passive investments. This means, the landlord/owner does not need to be hands-on. The amount of landlord responsibilities depends on the way the lease is structures, there are 3 types of Net leases.
Triple Net (NNN): No landlord responsibilities and and the tenant maintains the structure while also paying rent, taxes and insurance. This is the least risky option for investors as most credit-worthy tenants sign NNN leases
Double Net (NN): These leases normally have a clause that the landlord is required to maintain the maintenance of the property. Sometimes you will see leases say landlord is responsible for roof and structure. Any repairs needed, the landlord/owner is required to take care of them directly.
Single Net (N): These are very rare cases. In these leases the landlord transfers a minimal amount of risk to the tenant, who pays the property taxes.
On top of the stable lease terms, net leases also give real estate investors peace of mind as most tenants are credit worthy and come with corporate guanatees. This means there is no doubt that the rent will be paid each month.
How to become a Real Estate Investor
A great way to make sure you are investing correctly is to work with a broker. The brokers at Avison Young solely focus on net lease. Avison Young is a global brokerage that prides itself on knowing the ins and outs of the dynamic net lease market. Depending on the amount you would like to invest, your time commitment and your investment horizon, a broker in our net lease group will work with you, one-on-one to generate the ideal investment for your portfolio. If you are ready to become a real estate investor, reach out to us today by filling out the contact form or contacting us here.