Many people associate commercial tenancies with calculating rent, and when you look at commercial tenancy, you'll find that most people are only aware of two types of options. Net leasing and gross leasing. Both have advantages, and if you choose a net option, you will generally have a lower base rent. A gross lease means paying a flat rent, and the landlord pays for additional expenses like maintenance. However, you will find that there are also four different types of leases.
Single Network Leases and Your Liability
In the case of a one-time lease, 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 for utilities and any additional services in that area. The owner is responsible for all other expenses of the building.
A commercial lease with a double net
In a double-threaded commercial tenancy, your responsibility is to pay base rent and pay a share of property taxes. You will also have to pay for additional services, home insurance premiums, utilities and part 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. this should be done at the property.
What is a triple lease?
When you have a triple lease you will notice that this is more common not with homes but with commercial warehouses. You are responsible for paying the rent like everyone else, and you will either pay some or all of the property taxes. You will also pay for management fees, utilities, additional services and each of the regular area expenses. That means maintenance, waste and everything else. In this, you are responsible for everything. On top of that, if there is an attendant in the parking lot or building lobby, you pay their fee, not someone else.
Incredibly restrictive triple net leases
This is the most restrictive and least known option when you have an absolute triple net lease. You are responsible for all building expenses, no matter what. An example of what we mean is to imagine that the building is on fire and is destroyed, or that an earthquake has flattened the building; you are still responsible for the cost it will take to repair it and everything involved.
You should both be happy
Each type of lease has advantages and problems that can arise. Negotiating is always difficult and requires compromise, but the goal is to be happy with the deal when you're done. The owner should also be satisfied. When you have agreed on a solution that works for both of you, you can begin the process of renting a property. Using the tips we gave you above, you'll see the best options to choose from.
