Why do single tenants have net leases?
Single Net Leases The landlord is also responsible for any maintenance and/or repairs that must be done during the course of the lease within the property. Tenants under a single net lease end up paying slightly lower rent than with a standard lease because of the added cost of property taxes.
What is single tenant net lease?
A single net lease is a commercial real estate lease agreement in which the tenant agrees to pay property taxes in addition to rent. A single net lease is a form of pass-through lease in which taxes associated with the property become the responsibility of the tenant instead of the landlord.
What is net lease investment?
The term net lease refers to a contractual agreement where a lessee pays a portion or all of the taxes, insurance fees, and maintenance costs for a property in addition to rent. A net lease is the opposite of a gross lease, where the tenant pays a flat rental fee while the landlord is responsible for the other costs.
What does single tenant investor mean?
Single tenant property is property that is fully occupied by a single user. Single-tenant, net-leased properties, which sometimes use the acronym STNL, can be attractive to individual investors due to their low management responsibilities, predictable cash flow and often long lease terms.
What does Stnl mean in real estate?
Single-Tenant
A Single-Tenant Triple-Net property (also known as “Net-Lease”, “STNL” or “NNN”) refers to a property which is 100 percent leased to one tenant with a lease structure in which the tenant is responsible for all property-related expenses, leaving the landlord with minimal responsibilities.
What is the difference between a gross lease and a net lease?
A net lease is the opposite of a gross lease in terms of payment for utilities, taxes, repairs and any other additional expenses. In a net lease, the predetermined rent is typically lower and the additional costs aren’t included in that set rate.
What does Stnl mean?
A single-tenant net lease, or STNL, is a type of lease agreement in which an entire commercial property is leased to just one tenant on a triple net basis.
What is a net lease agreement?
Net lease A type of commercial real estate lease under which you typically pay for one incidental expense directly. In a single net lease, you usually pay the base rent plus property taxes (though in some cases, you might pay for insurance or utilities instead). The landlord pays all other expenses.
Why is it called a net lease?
The term “net lease” is distinguished from the term “gross lease”. In a net lease, the property owner receives the rent “net” after the expenses that are to be passed through to tenants are paid.
What does Stnl stand for?
STNL stands for single tenant net lease. STNL generally is used to describe a class of real estate that is leased to one single tenant. The majority of net leased investments (also referred to as NNN) are single tenant, however you will find net lease assets, usual NN or Double Net, that have multiple tenants.
Why would a single tenant net leased investment be attractive for an investor?
Stable, Predictable Income – Many people consider Single-Tenant Net-Leased properties to be a bond-like investment because of their stable, predictable returns. This means you can predict a steady income stream from your investment, regardless of changes in the overall economy or real estate market.