NNN Leases, Simply Explained

An NNN, or triple net, lease is a commercial lease structure where the tenant typically pays base rent plus three major operating expenses: property taxes, insurance, and building maintenance. For single-family investors exploring different income strategies, the key idea is that more property costs may pass to the tenant instead of being paid directly by the landlord. However, responsibilities vary significantly by contract. The lease should clearly explain expense calculations, payment timing, repairs, caps, exclusions, and reconciliation procedures. Comment NNN for my investor guide. Educational only—not legal, tax, or investment advice.