Triple Net Leasing and Commercial Real Estate Insurance
Savvy real estate investors know that investing in triple net leases is a solid long-term strategy. These low-risk portfolio properties offer steady income with minimal investment.
What is A Triple Net Lease?
Like a normal rental agreement, a triple net lease requires renters to pay property owners a monthly fee. Unlike typical lease agreements, the renter is also responsible for paying any taxes, insurance fees, and maintenance costs during the leasing period. Because the renter is willing to assume extra financial burden, property owners will rent these lots out for a significantly reduced price.
Strip malls, buildings used for office space rentals, and industrial parks are some of the properties that use triple net leases. Owners of large commercial properties rent the lots to a management company or individual who controls the daily use of the lands and structures.
Qualifications for Triple Net Leasing
To qualify for a triple net lease, investors must be able to prove at least $1 million in assets. The value of their primary residence cannot be added to this calculation. An annual salary of at least $200,000 for individuals ($300,000 for couples) may substitute. Smaller investors can participate in a real estate investment trust (REIT) with triple net lease properties as part of their portfolio.
Insurance for Triple Net Lease Properties
Tenants are responsible for purchasing their own commercial property insurance policies. Like other investment properties, renters need protection from natural disaster, theft, and accidents.
Ramey King Insurance offers commercial real estate insurance packages that cover every aspect of your business. More than just real estate insurance, our network of agents can find policies to protect your vehicles, residences, and personal belongings too.
Contact us to find out how to insure all of your business investments.