Common Conversation regarding having rental property: Why don’t you get into the rental business?
I don’t want to deal with tenants!  Some don’t pay, then if something breaks you have to fix it, and of-course it would probably happen at the most in-opportune time, like when I’m on vacation

Triple Net Leases are so good, that the slang term for them for real estate professionals is a “Hell or High Water Lease”  Meaning coming hell or high water, the tenant is going to continue to pay for everything, and you are just going to sit back and collect your check every month!

Sometimes this slang-term also refers to a type of triple net lease which requires the tenant to rebuild after a casualty, regardless of the adequacy of insurance proceeds, and to pay rent after partial or full condemnation. These leases are not terminable by the tenant, nor are rent abatements permissible. The concept is to make the rent absolutely net under all circumstances, equivalent to the obligations of a bond: hence the “hell-or-high water” moniker.

This is a brief summary of what the maintenance clause will look like in a triple net lease contract:

Z Company has signed a new 15 Year NN Lease with a projected Rent Commencement Date of 7/1/2007. The Lease includes 4, 5-Year options to extend with 10% rent increases in each. Z Company pays real estate taxes directly, is required to maintain general liability insurance additionally Z Company is required to reimburse Landlord for insurance policy premiums related to fire and property damage. Landlord shall be responsible for all HVAC repairs and replacements during the first year of the Lease; thereafter Z Company shall be responsible for all repairs and replacements up to $500 per occurrence and no more than $1,000 annually. Because the parking lot is concrete, Z Company is responsible for the repair and maintenance.

The maintenance on the HVAC is required because usually, you are acquiring a new building and their might be some problems with the initial installation.  The good thing is that whoever installed the HVAC will usually do the repairs for free.  Additionally, the HVAC unit will probably be under-warranty so this is not a significant risk at all!

When considering lease options as a landlord or tenant, the full terms of the lease should always be read before committing. In the case of a triple net lease, make sure that all the terms are clear and agreed upon by both parties. Consulting a lawyer who specializes in real estate is an excellent idea.

So go get’em, come hell or high water, I think Triple Net Leases are a good deal for any serious real estate investor, that wants to break into the inter-sanctum of commercial real estate.

So you’re searching online for a sample triple net lease to find out what this type of lease is all about and maybe use the sample in your own investment plans. While an online search for a sample triple net lease may sound like a logical thing to do, there are two problems with this strategy. First of all samples of this type of lease is as rare as hen’s teeth on the Internet. Now that’s not really a huge problem. If you’re willing to do a little hunting around, you’ll eventually track down a few. And that’s when the problems arise. How do you know the samples you’ve found accurately represent what a triple net lease should contain? Moreover, how can you be sure that what’s in the sample lease covers everything you’ll need in your own lease agreement?

Unless you’re already an expert at dealing with the triple net lease (in which case, you probably wouldn’t be looking online for samples), there are a lot of elements in a sample lease that can trip you up. To avoid trouble in the future, the wording of financial obligations must be clear and precise.

Keep in mind that a triple net lease obliges the lessee to pay all costs associated with the building. That includes things like utility bills and building repairs, which can vary dramatically depending on how the property is being used. Now if you end up with a loop-hole in your lease that lets the lessee off the hook for, say, certain kinds of building repairs, can you imagine what could happen?  It’s not so bad if you’re the one leasing the property. If you’re the owner, though, you could be in for a major hit to your bank balance.

Needless to say, a lease document isn’t something you want to cut corners on. A single error could cost you thousands in various fees, not to mention the headaches and hassle that go along with trying to get misunderstandings ironed out and rewrite the lease so that all parties involved are satisfied with then new wording.

Quite often, it’s not particularly safe to depend on the Internet for getting correctly worded legal forms. There are too many people out there who build sites just for the money and have no concern for whether you get accurate lease forms or not. That fact that you could lose serious money because of an error they left in their sample form is of no concern to them.

That doesn’t mean there aren’t any good places where you can find a sample triple net lease online, though. If this is your goal, seek out high quality sites specifically designed to help commercial real estate investors, the business sites of a commercial real estate agencies, or the personal Web sites of a commercial real estate investors. All these places can be excellent sources of forms because the people behind the sites truly understand real estate investing and, because they’re trying to run a business online, it’s in their best interest to make sure you get a quality product.

A sample triple net lease is hard to find online and a good one is even hard to find. If you need a quality sample triple net lease, though, check the Web sites of commercial real estate agents and sites for real estate investors and you’ll be able to find a sample you can use.