How to Calculate Triple Net Lease

A triple net lease is an agreement between a tenant and landlord that makes the tenant responsible for all costs of the property in addition to rent. This style of lease is common for commercial properties, and according to The Money Alert, the tenant will pay rent, taxes, insurance and maintenance on the building. Triple.net says that triple net leases are commonly used for very large properties and long-term leases of around 10 years or more. The main benefit of a triple net lease for a tenant is greater control over the building. For landlords, the obvious benefit is to avoid paying any costs on the building while the tenant has responsibility for all costs.

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Step 1

Divide the yearly property taxes by 12 to determine the monthly property taxes. This result will be the tax per month figure.

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Step 2

Calculate the monthly insurance cost by dividing the yearly insurance cost by 12. This result will be the insurance per month figure.

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Step 3

Add the monthly rent cost, monthly maintenance cost, the tax per month figure and the insurance per month figure. The total of these costs will be the monthly triple net lease cost.

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