Triple Net Lease, Rents & 1099 Reporting

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A triple net lease is a very particular type of commercial lease. Find out about a triple net lease, rents and 1099 reporting with help from a registered real estate broker in this free video clip.

Part of the Video Series: Real Estate Info
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Video Transcript

My name is Cathy McClellan, I'm a Florida licensed real estate broker and certified building contractor with Today's Homes Real Estate in Panama City, Florida. Our topic today, is triple net leases. A triple net lease is a commercial lease, it is a lease where the tenant probably pays most of the expenses to do with that building. They pay for the insurance, they pay for the taxes, they pay for the operating expenses, they pay for the capital expenditures. Usually these leases are five to ten years long term leases. If you've been to a strip mall, you've probably seen somebody that has been operating their business under a triple net lease. A hair salon, a food shop, a nail shop, these are all places that lease long term and they're probably operating their business with a triple net lease. These leases usually have fixed rate increases over the time, the term of the lease, which protects the landlord. It also makes it easy for the tenant to operate their business, knowing that they don't have to move or find a new location for their business, over that period of time. While your tenant probably pays all of the bills that have to do with that triple net lease. You are going to as a landlord, you as a landlord are going to have expenses. Maybe have a tax accountant, a real estate broker, a property manager. Those are all expenses that have to do with your property and you will issue them a 1099 Miscellaneous, if you've paid them an excess of 600 dollars per year. This is the information I have on a triple net lease, I hope you find it helpful. Until next time, this is Cathy McClellan.


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