One of the many options available in commercial property investing is the Triple Net Lease. Easily defined as an agreement where the lessee is responsible for all costs in the property, including but not limited to maintenance, property taxes and insurance. The tenants are often chain drugstores, discount retailers, and fast-food and dining establishments. Though there are definitely advantages to triple net leases, they should not be considered a 'risk-free' investment
For the owner, the biggest advantage of a triple net lease, other than the pure diversity it offers a portfolio, is the low-maintenance
of the investment property, as the tenants often manage themselves, usually operating as franchises. The advantage for the tenant is the lower-than-average rent, often secured by signing a long-term lease agreement. Securing long-term leases
will dramatically affect your bottom line. On the other end, single-tenant leases offer risks as well. In the case of a default, bankruptcy or any other event, if the tenant vacates, this affects the income of the entire property. That's why it is always a good idea to get tenants in with a reliable credit history, and get them into a long-term lease agreement.