Not sure what a triple net lease is or why you would want one? Ready to implement a triple net lease, but not sure where to start? This eBook will help answer your questions. Here’s a brief teaser:
Triple net leasing is different from typical leasing structures such as full gross leases and modified gross leases.
With triple net leasing, all of the risk is taken off of the landlords, and tenants are fully responsible for their energy consumption, in addition to their taxes and their insurance.
Tenants are usually in favor of triple net leasing. It shows that their bills are fair, they are able to see the results of their energy efficiency investments, and they can market themselves as sustainability leaders.
There are also plenty of benefits for landlords. Landlords can remove unaccounted for costs from their budgeting, because the tenants pay for their consumption. This structure also has positive effects on building equipment and Energy Star Scores. As tenants are responsible for their actions, they tend to be more careful with how much energy they use which makes building equipment lasts longer and it will be easy to raise your Energy Star Score goes up.
There are a few different ways to implement triple net leasing. You might think that the best way to bill your tenants for their utilities is to have the utility company install a meter for their space. But new technologies, like wireless submeters, make it faster and more affordable to bill back your tenants. Of course you can always just bill your tenants based on a pro rata. But we don’t recommend this, because it is not fair to your tenants, and they will quickly notice that they are paying for their neighbors’ consumption.
Chances are, you won’t be switching all of your tenants to triple net leases at the same time. With our free tenant bill-back calculator, you can figure out exactly how to transition your leases, tenant by tenant. Whether you’re moving from all-inclusive leases to triple net, prorated to triple net, or a combination of the two, both switching to triple net, this calculator has the answers for you.
Ready to start? Download our free eBook!
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