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Double Net

A double net lease requires the lessee to pay all taxes and insurance expenses, as well as rent, for the use of a property. In this situation, the leasor or landlord is responsible for specific carve outs such as air conditioning and structure. Beyond these maintenance expenses, the landlord has no other responsibility for property-related costs.

Another type of lease, the bond lease, is even more beneficial to the landlord. With a bond lease, the lessee is required to pay all expenses for the property, including those that are maintenance and insurance-related. The tenant who signs a bond lease is not entitled to termination or abatement rights.

Double net leases frequently call for the tenant to pay insurance and tax bills directly. With this type of arrangement, lenders are often able to waive impound accounts. This is not typically the case, however, when the landlord pays these bills and allows the tenant to reimburse him. In such cases, lenders often do require impound accounts.

At TM 1031 Exchange, we are real estate professionals skilled with net lease property, retail, industrial real estate, and 1031 exchanges. We also have extensive experience with office, land, multi-family, and hospitality real estate. On average, our senior management has more than two decades worth of experience with high-level real estate. We specialize in assisting investors in developing the right strategies and finding the appropriate properties to achieve their unique goals. Contact us to discuss your needs. We can be reached toll-free at 1-877-4TM-1031 or via e-mail here

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