Many people associate commercial leasing agreements with rent calculation, and when you are looking at commercial leasing, you will see that most people only know about two types of options. Net leasing and gross leasing. Both have advantages, and if you choose a net option, you will usually have a lower base rent. A gross lease means paying a lump sum of rent, and the landlord pays additional expenses like maintenance. However, you will find that there are four different types of leases as well.
Single-Net Leases And Your Responsibility
A single-net lease is where the tenant pays more than the base rent. In this type of lease, they also pay a share of the property tax for the building, and you will pay the utilities and any additional services in this area. The landlord is responsible for every other expense of the building.
A Double-Net Commercial Leasing
In a double-net commercial leasing, your responsibility is to pay the base rent and pay a share of the property taxes. You will also have to pay additional services, the property insurance premiums, the utilities, and a portion of the property taxes, and you will find that the only thing your landlord has to do is be responsible for a common area of maintenance or structural repairs that would need to be done to the property.
What Is A Triple Lease?
When you have a triple lease, you will notice that this is more common not with houses but with commercial warehouses. You are responsible for paying the rent like the others, and you will either pay a portion of the property taxes or all of them entirely. You will also pay the management fees, utilities, additional services, and each of the ordinary area expenses. That means maintenance, trash, and everything else. In this, you are responsible for everything. In addition to this, if there is an attendant in the parking lot or lobby of the building, you pay their fees, not someone else.
Triple Net Leases That Are Incredibly Binding
It is the most binding and the least known option when you have an absolute triple net lease. You are responsible for all the expenses of the building, no matter what happens. An example of what we mean is to imagine that the building is on fire and is destroyed, or an earthquake leveled the building; you are still responsible for the cost it will take to fix it and everything involved.
You Both Should Be Happy
Each type of lease comes with benefits and issues that can arise. Negotiation is always challenging and takes compromise, but the goal is to be satisfied with the agreement when you are through. The landlord should be satisfied too. When you have agreed on a solution that works for both of you, you can begin the process of leasing a property. Using the tips we have given you above, you will see the best options for you to choose from.
