--- title: What Does A Landlord Pay In A Triple Net Lease? description: Investment properties with triple net leases in place can provide a number of potential benefits to landlords. image: https://www.realized1031.com/hubfs/Images/photo/abstract/money-house-seesaw-IS-1048402108.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # What Does A Landlord Pay In A Triple Net Lease? Posted Mar 1, 2021 ![money-house-seesaw-IS-1048402108](https://www.realized1031.com/hs-fs/hubfs/Images/photo/abstract/money-house-seesaw-IS-1048402108.jpg?width=750&height=392&name=money-house-seesaw-IS-1048402108.jpg) Investment properties with triple net leases in place can provide a number of potential benefits to landlords.  [Triple net leases](https://www.realized1031.com/glossary/triple-net-nnn-lease) -- also known as NNN leases -- can help reduce your investment risk in commercial properties because the majority of standard property expenses are passed on to the tenants. They also can provide a steady and predictable income from AAA-rated tenants. In this article we’ll examine the most common costs landlords typically pay in triple net lease agreements and reasons why this lease structure often proves beneficial to commercial real estate investors. ### How Triple Net Leases Can Benefit Landlords If you are exploring potential replacement properties to complete a [1031 exchange](https://www.realized1031.com/glossary/1031-exchange), or you are considering investing in commercial real estate through a Delaware Statutory Trust, it’s important to know how the NNN lease structure works. In a triple lease agreement, the majority of a building’s standard operating costs are assumed by the tenant. Typically, tenants pay the “net” amount for these three expenses: 1. Property taxes 2. Building insurance 3. Common area and routine building maintenance In most NNN leases, these costs, along with base rent, are charged to tenants over time. Since triple net leases usually range between 10 and 20 years, landlords can expect long-term passive management of their investments. This lease structure is favored by creditworthy national tenants such as Dunkin’, Rite-Aid, Big Lots!, AutoZone, and Winn-Dixie, to name a few, as well as fuel retailers, convenience store operators, and fast-food franchises that prefer to assume full responsibility for their own signage and branding. While it may sound like all landlords do is collect hassle-free monthly rent checks, they often are responsible for costs related to their investment properties. ### What costs do landlords pay in triple net lease agreements? You are responsible for the property’s mortgage, of course. While tenants pay for the triple net expenses listed above, oftentimes they will negotiate limit caps for major maintenance or repair expenses. These can include the installation of new boilers and chillers, repaving a parking lot, or replacing a roof. Depending on the terms of the lease, costs for these high-ticket items may fall upon the landlord’s shoulders. You also may have to pay for major problems that fall outside of standard maintenance, such as improvements or shoring to the building’s foundation or structural walls. Tenants nearing the end of their leases also may defer paying for major expenses such as electrical, plumbing, or HVAC issues. If they leave, landlords will have to fix any issues with these crucial building systems prior to finding new tenants. Building owners can avoid this issue by having annual inspections conducted at their properties, while investors seeking real assets with triple-net lease agreements in place might consider hiring independent inspectors to fully vet properties and their major operating systems prior to inking a deal. Triple net leases offer investors the potential for long-term income from stable and creditworthy tenants with few ongoing expenses. However, since NNN lease terms can have a wide range of variables, you should carefully examine all potential liabilities as well as engage expert counsel to help ensure you fully understand the pros and cons of this lease structure. This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Consult with your tax advisor regarding your individual circumstances. Download The Guide To Net Lease Properties [![The Investor's Guidebook To Net Lease](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/Net-Lease-eBook-250.png?width=250&height=250&name=Net-Lease-eBook-250.png "Learn More About Net Lease ...") ](https://www.realized1031.com/blog/what-does-a-landlord-pay-in-a-triple-net-lease#blogform) Download eBook ---   --- ### The Investor's Guidebook To Net Lease ![Download The Guide To Net Lease Properties](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/Net-Lease-eBook-550.jpg?width=550&height=650&name=Net-Lease-eBook-550.jpg) Learn More About Net Lease Investments. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. Search ### [Why Realized](https://www.realized1031.com/why-realized) - [Wealth Management](https://www.realized1031.com/the-wealth-management-gap) - [Why Realized](https://www.realized1031.com/why-realized) - [Our Process](https://www.realized1031.com/how-realized-works) - [Scenarios](https://www.realized1031.com/scenarios) - [Private Client Program](https://www.realized1031.com/private-client) - [Realized Exchange Services](https://www.realized1031.com/realized-exchange-services) ### [The Company](https://www.realized1031.com/about-us) - [The Team](https://www.realized1031.com/about-us) - [FAQ](https://www.realized1031.com/frequently-asked-questions) - [Testimonials](https://www.realized1031.com/testimonials) - [Press](https://www.realized1031.com/press) - [Careers](https://www.realized1031.com/careers) ### [Partners](https://www.realized1031.com/partners) - [Financial Advisors](https://www.realized1031.com/advisor) - [Broker Dealers](https://www.realized1031.com/partners/broker-dealers) - [Real Estate Agents](https://www.realized1031.com/partners/real-estate-agents) - [Certified Public Accountants](https://www.realized1031.com/partners/certified-public-accountants) ### [Resources](https://www.realized1031.com/resources) - #### Learn - [Articles](https://www.realized1031.com/blog) - [Glossary of Terms](https://www.realized1031.com/glossary) - [Capital Gains Tax Rates](https://www.realized1031.com/capital-gains-tax-rate) - #### Watch - [Video Library](https://www.realized1031.com/videos) - [Webinar Archive](https://www.realized1031.com/webinars) - #### Read - [Delaware Statutory Trust](https://www.realized1031.com/delaware-statutory-trust) - [Tenants-In-Common](https://www.realized1031.com/tenants-in-common-tic) - [1031 Exchange](https://www.realized1031.com/1031-exchange) - [Qualified Intermediary](https://www.realized1031.com/qualified-intermediary) - [Qualified Opportunity Zones](https://www.realized1031.com/opportunity-zones) #### Realized - 500 W 13th Street Austin, TX 78701 - (877) 797-1031 ##### [Contact Us](https://www.realized1031.com/contact-us) - [![Realized on Facebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-facebook-whiterev.png?width=60&height=60&name=social-facebook-whiterev.png)](https://www.facebook.com/Realized/) - [![Realized on LinkedIn](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-linkedin-whiterev.png?width=60&height=60&name=social-linkedin-whiterev.png)](https://www.linkedin.com/company/realized/) - [![Realized on YouTube](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-youtube-whiterev.png?width=60&height=60&name=social-youtube-whiterev.png)](https://www.youtube.com/c/Realized1031?sub_confirmation=1) - [![Realized Holdings, Inc. BBB Business Review](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/bbb/RZH2-bbb-seal.png?width=40&height=65&name=RZH2-bbb-seal.png)](http://www.bbb.org/central-texas/business-reviews/real-estate-investors/realized-holdings-llc-in-austin-tx-1000112948/#bbbonlineclick) - [![FEA Logo](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/fea/RZH2-fea-logo.png?width=82&height=65&name=RZH2-fea-logo.png "FEA Logo")](https://www.1031.org) SECURITIES DISCLOSURE Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized Holdings”). Securities and/or Investment Advisory Services may be offered through Registered Representatives or Investment Advisor Representatives of Realized Financial, Inc. ("Realized"), a broker/dealer, member [FINRA](https://www.finra.org)/[SIPC](https://www.sipc.org/), and registered investment adviser. Realized is a subsidiary of Realized Holdings, Inc. ("Realized Holdings"). Check the background of this firm on [FINRA's BrokerCheck](https://brokercheck.finra.org/firm/summary/22333). Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested. This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "Investment properties with triple net leases in place can provide a number of potential benefits to landlords. Triple net leases -- also known as NNN leases -- can help reduce your investment risk in commercial properties because the majority of standard property expenses are passed on to the tenants. They also can provide a steady and predictable income from AAA-rated tenants. In this article we’ll examine the most common costs landlords typically pay in triple net lease agreements and reasons why this lease structure often proves beneficial to commercial real estate investors. How Triple Net Leases Can Benefit Landlords If you are exploring potential replacement properties to complete a 1031 exchange, or you are considering investing in commercial real estate through a Delaware Statutory Trust, it’s important to know how the NNN lease structure works. In a triple lease agreement, the majority of a building’s standard operating costs are assumed by the tenant. Typically, tenants pay the “net” amount for these three expenses: Property taxes Building insurance Common area and routine building maintenance In most NNN leases, these costs, along with base rent, are charged to tenants over time. Since triple net leases usually range between 10 and 20 years, landlords can expect long-term passive management of their investments. This lease structure is favored by creditworthy national tenants such as Dunkin’, Rite-Aid, Big Lots!, AutoZone, and Winn-Dixie, to name a few, as well as fuel retailers, convenience store operators, and fast-food franchises that prefer to assume full responsibility for their own signage and branding. While it may sound like all landlords do is collect hassle-free monthly rent checks, they often are responsible for costs related to their investment properties. What costs do landlords pay in triple net lease agreements? You are responsible for the property’s mortgage, of course. While tenants pay for the triple net expenses listed above, oftentimes they will negotiate limit caps for major maintenance or repair expenses. These can include the installation of new boilers and chillers, repaving a parking lot, or replacing a roof. Depending on the terms of the lease, costs for these high-ticket items may fall upon the landlord’s shoulders. You also may have to pay for major problems that fall outside of standard maintenance, such as improvements or shoring to the building’s foundation or structural walls. Tenants nearing the end of their leases also may defer paying for major expenses such as electrical, plumbing, or HVAC issues. If they leave, landlords will have to fix any issues with these crucial building systems prior to finding new tenants. Building owners can avoid this issue by having annual inspections conducted at their properties, while investors seeking real assets with triple-net lease agreements in place might consider hiring independent inspectors to fully vet properties and their major operating systems prior to inking a deal. Triple net leases offer investors the potential for long-term income from stable and creditworthy tenants with few ongoing expenses. However, since NNN lease terms can have a wide range of variables, you should carefully examine all potential liabilities as well as engage expert counsel to help ensure you fully understand the pros and cons of this lease structure. This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Consult with your tax advisor regarding your individual circumstances.", "articleSection" : [ "Net Lease" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2022-04-15T18:26:58+0000", "datePublished" : "2022-04-15T18:26:58+0000", "description" : "Investment properties with triple net leases in place can provide a number of potential benefits to landlords. ", "headline" : "What Does A Landlord Pay In A Triple Net Lease?", "image" : { "@type" : "ImageObject", "height" : 501, "url" : "https://f.hubspotusercontent10.net/hubfs/733513/Images/photo/abstract/money-house-seesaw-IS-1048402108.jpg", "width" : 750 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/what-does-a-landlord-pay-in-a-triple-net-lease", "name" : "What Does A Landlord Pay In A Triple Net Lease?", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://f.hubspotusercontent10.net/hubfs/733513/Images/photo/abstract/money-house-seesaw-IS-1048402108.jpg" } ```