My father owned apartment complexes while I was growing up. It seemed like he’d drag me with him twice a week to manage maintenance problems or deal with unruly tenants. And then at the beginning of the year, he would have a big property tax to pay. Needless to say, it seemed like a headache.
As I found out the hard way from my father, dealing with apartments as a landlord can be painful. On the contrary, investing in triple net leases as a landlord is very painless. In a triple net lease, the landlord has ZERO responsibilities. He/she doesn’t have to pay property taxes, nor have to pay for maintenance when something is faulty at the property. ALL of the responsibility at the property lies with the tenant. The ONLY responsibility of the landlord is collecting rent every month.
For those that are unfamiliar with triple net leases, here is an example of a triple net lease. Dunkin Donuts rents a building from one of our clients in Sarasota, Florida for 7,844/month. As Dunkin Donuts makes their donuts and coffee in that building, they are also responsible for the property tax, and any maintenance issues. If there is a leak in the roof, Dunkin Donuts is responsible for fixing that leak. Our client has ZERO landlord responsibilities.
So, one must be thinking, “what’s the catch?” There is no “catch.” Triple net leases are one of the lesser-known real estate investments. They may be lesser known, but triple net leases are one of the best real estate investments on the market. Landlords have no property headaches; they just collect rent checks every month!