Triple Net (NNN) Lease Properties

If you are going to invest in triple net (NNN) lease properties, it is important to understand what you need. For instance, it is much more preferable to have a single tenant with your property than multiple tenants.

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What is so great about a single tenant?

A single tenant situation with an NNN lease, gives you a long term lease where you have little if anything required of you as owner. For instance, a single tenant NNN lease may belong to a high credit company like Wendy’s. If you have Wendy’s as your only tenant, for 20 years, on an NNN lease, then you have to do nothing except pick up your rent check every week. Wendy’s would cover improvements to the property, fees, and even taxes so that you have nothing to do but collect.

Why not multiple tenants?

So if you know why a single tenant is so good, then you may ask what is so bad about having multiple tenants with your NNN lease. Multiple tenants can take place when your property is a strip mall or larger building housing more than one business. The reason this can be more difficult is the possibility of the businesses affecting one another, affecting your rent reception, and all other general problems that can come from having more than one person in a situation. In other words, when at all possible, it is in your best interest to pursue a NNN property with just one good tenant in it.

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So consider taking on properties with single tenants like Walgreens, Wendy’s, and even CVS. Such companies have solid credit, the funding to back a long term lease and the reliability to take good care of your property while staying on time with payments.