Triple Net Lease Benefits for the Seller

A triple net lease investment property is attractive to people who are looking to invest in property which can produce a cash flow. Because triple net lease properties can yield a great return on investment - meaning the buyer can easily recoup his costs in buying such a property - and because they require little investment after initial costs, these properties are highly desired by real estate investors. Furthermore, a triple net lease often comes with long lease terms for tenants, creating stability in the rental income a buyer can receive.

Minneapolis Triple Net Lease Property Tax Benefits

A Minneapolis triple net lease property can save the owner a significant amount in taxes. By definition, a triple net lease property requires the tenant to pay real estate taxes. This saves the owner yearly.

Once an owner decides to sell a triple net lease property, he or she can explore selling the property as a 1031 exchange, which would save the seller from paying either all or a portion of the capital gains tax that would normally be levied. In a 1031 exchange, the tax that would be levied must be used to buy a replacement investment property. Thus, you can continue to have investment property without incurring additional taxes.

Because of the unique definition of a triple net lease property, these forms of investment can not only be fruitful monetarily but they can save an owner or landlord from the hassle of owning rental property.