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How do you write a lease termination letter?

The date of the letter. The name and address of the tenant. A request that the tenant vacate by a specific date. The reason for termination.

How do you negotiate a triple net lease?

There are many areas where a tenant can negotiate a NNN lease to make it more favorable. First, the base rental amount becomes a key negotiating term. If the tenant is taking on all responsibility and risk of the landlord's overhead, then the tenant may be able to negotiate a more favorable base rental amount.

What is the landlord responsible for in a triple net lease?

The landlord is responsible for all other operating expenses. A triple-net lease, often used with single-user industrial facilities, means that the tenant pays “TMI” — taxes, maintenance, and property insurance. The landlord is responsible for the roof and the structure, and sometimes the parking lot.

What does the tenant pay in a triple net lease?

A Triple Net (NNN) Lease is a commercial lease agreement in which the tenant agrees to pay a base rental amount and the net amount of the landlord's real estate taxes, the net amount of the building insurance, and the net amount of the common area maintenance expenses.

Is a triple net lease bad?

A triple net lease has risk for both the tenant and landlord (lessor). The Bad: For the tenant, there are some unknown variables that might cause a problem. Take for instance rising costs. A triple net lease might have some sort of cap, but likely, a tenant would be forced to cover rising taxes and insurance rates.

Why would you want a triple net lease?

The triple net lease, also called a “triple N,” places responsibility with the tenant for three payments in addition to the rent. The tenant pays for building maintenance, insurance and property taxes. Lower rent makes it easier to find tenants, so the landlord is less likely to have a vacant building.

What is not included in a triple net lease?

Net leases involve tenants paying one or more additional expenses in the commercial real estate industry. Double net leases include property taxes and insurance premiums with the base rent. Triple net leases include property taxes, insurance, and maintenance costs plus base rent.

Is a triple net lease a good idea?

The Good: For the tenant, the triple net lease can be great. A tenant has more freedom with the structure and can better customize a space for use WITHOUT the capital investment of a purchase. The tenant pays less for rent, as they have incurred other expenses.

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