Triple Net Commercial Lease Agreement Forms

The next topic of discussion will be that of the “monthly rent”. The fifth element of this contract bears this title and requires you to document the dollar amount the tenant is willing to pay, and the landlord agrees to accept it as rent. Provide this content by writing it in the first blank of this statement, and then typing it numerically in the following parentheses. In addition, you must set the day of the month when this must be received by the landlord in order to execute this lease. Use the space between the words “. Paid on” and the term “Day of each month” to display this information. It should be noted that this agreement can only oblige the owner and tenant to preserve their contents. Before proceeding, any “additional terms and conditions” that the landlord and tenant wish to include directly in the wording of this document must be established before completing this form. Use the space in “37. Additional terms and conditions” to capture them exactly as both parties wish. If you need more space, you have the option to insert more lines for your use or continue in an attachment.

If there are no such additions, you can leave it blank or indicate that no additional conditions exist. In some cases, especially on a large property, the owner may spit out the property to rent it out as two or more separate premises. If this is the case, the landlord must consolidate the percentage of space leased by the tenant based on the total area of the entire property under the landlord`s control. The two spaces of the “12th proportional share” require a written ratio of this percentage, as well as a numerical input. Note that the line in parentheses is appended to a percentage sign and requires the numeric value of the percentage as input. As with any property and business, both parties express concern about liability with respect to incidents where someone is injured or dies on the property or if the property has been damaged. The next point we will focus on, “11. Landlord`s Liability and Liability Insurance” will ask for the single-limit coverage that the landlord must receive to protect and compensate the tenant when exposed to such events. It is important that any type of coverage is officially registered under this agreement. First, find the two empty lines in front of the words “For injuries,” and then document the amount of coverage the landlord must keep for the duration of the lease for the tenant.

This should be noted as a written amount and as a numerical amount in the lines before or after the dollar sign. You must do the same to declare the coverage that the owner must receive.” For the death of people” and “. For property damage. This document must include the subject of renewal in its definitions. Many agreements allow the tenant to continue their current lease with or without rent supplements. Article `8. Renewal Options” displays two instructions, each setting an option. If the landlord has decided not to give the tenant the opportunity to renew this contract, you need to check the first box in this article (and proceed to step 15). For multi-year leases, the upper limit usually increases by 5% to 10% each year.

Example: Multiply the price per square foot by $40/ft² and the total area of the rented space at 3,000 sq. ft., and the total annual rent is $120,000. A single net lease requires the tenant to pay only property taxes in addition to rent. In the case of a double net lease, the tenant pays the rent plus property taxes and insurance premiums. A triple net lease, also known as an NNN or Net-Net-Net lease, requires the tenant to pay the rent plus any additional expenses. For example, if the annual rent is $10,000 and he estimates the additional cost at $3,000, the actual rent he charges the tenant is $13,000 per year. While traditional leases are more common than net leases, they pose a greater risk to the owner, who must absorb unexpected increases in additional costs. For this reason, some landlords prefer to use some sort of net lease and transfer some or all of the risk to the tenant. Most triple net leases are long-term leases with a term of more than 10 years and typically include concessions for rent increases. They are also called Net-Net-Net leases or NNN in the real estate sector. (For more information, see: What types of properties use Triple Net Leases (NNNs)?) Individual net leases, often referred to as net leases or N, are not as common in the rental world.

In such a lease, the landlord transfers minimal risk to the tenant who pays the property taxes. This means that all other expenses – such as insurance, maintenance and repairs, and utilities – are the responsibility of the owner. The landlord is also responsible for all maintenance and/or repair work that must be done inside the property during the lease. Several articles in this document drew attention to the communications required from the landlord to the tenant or vice versa. Therefore, we need to formally establish the mailing address where each party can ensure that a sent notification is received. The fifteenth dot, marked with the bold word “Reviews”, represents a specific area where this can be achieved. The blank line added to the word “landlord” prompts you to provide the landlord`s mailing address. This is the address to which the tenant must send all his communications regarding this rental agreement. After saving the location of the premises, the empty space is located in the element labeled “2. Profitable space” requires you to fill in the number of square meters that will be rented as a result of this lease. This should be either the total number of square feet of that rented property to the tenant (as a whole) or the exact area of the space rented by the tenant in a larger property. .

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