Commercial Property
I have read that businesses leasing a commercial property pay for their own insurance and taxes.
What happens when it is one building with a store front downstairs and 4 apt. upstairs? Does the storefront pay for a share of taxes and insurance? Is that worked into the lease?
This is a NJ property. I would appreciate any input.
I think you are referring to a net net lease. For simplicity reasons, I just figure in my costs, and adjust the lease agreement accordingly.
[addsig]
Quote:
On 2003-10-31 11:26, ferris83 wrote:
I have read that businesses leasing a commercial property pay for their own insurance and taxes.
If they pay insurance, taxes, and maintenance - this is called a triple net lease (NNN)
What happens when it is one building with a store front downstairs and 4 apt. upstairs?
A lease is a negotiatied contract and this property could be leased in many ways. I would not think that it is a triple net lease, but the commercial tenant may pay a pro-rata share of the taxes and insurance .
Does the storefront pay for a share of taxes and insurance? Is that worked into the lease?
This is a NJ property. I would appreciate any input.
[addsig]
The renting of a commercial property or a mixed use property is strictly in accordance with the negotiated terms of the lease. Look no farther. Forget all the nomenclatures. Just negotiate.
I have such a property three story. On the Ground Floor two commerical Tenants They pay a fixed rate lease which of course considers the cost of taxes. They pay their own insurance but I carry a master liability policy and fire etc. etc.
The next level up is four one bedroom apartments They lease on a one year base with a damage and one months rent on deposit.
At the top, the loft, the artist, writer, poet, loafer, highly creative non commercial type who everybody loves and takes care of him even paying his rent on occasion. But he does watch over everything and sweeps and cleans and reads everybodies mail and reports to me. I even bought one of his paintings, belongs in a Roman Casa, in the Vomitorium...
The strange thing everybody helps each other. The students in the second floor fill in for the CPA ground floor tenant and the seller of Orthopedic goodies next door. They even ran the shops when the good Dr. took off on vacation. Works out real well but you must negotiate with each one.
I furnish electricity and water and gas, but I have a computer setup that reads the use for each unit and I present them a retail bill each month for such items. I of course pay the Utilities on a slightly reduced price.
Cooperative Lucus
The containers into housing keeps me pretty busy these days. Up and down the freeways.