As a business owner in Pennsylvania, there are many areas you need to be knowledgeable about and responsible for. While focusing on your business should be a priority, it is important you understand what you are signing when you lease office space. The contracts can be confusing and if you do not comprehend what it says you may be surprised when hit with additional bills you were not expecting. A triple net lease is one of the basic structures you will see in a commercial lease.
According to Forbes, a triple net lease means the landlord is responsible for structural repairs and the tenant is responsible for all other expenses. While some entrepreneurs may think this structure is not ideal, there are some advantages to signing a triple net lease.
According to the Chronicle, one of the biggest advantages of a triple net lease is the rent is typically lower than with other types of leases. This is especially true if it is a newer building with fewer maintenance issues.
One thing to be aware of with a triple net lease is increasing property taxes. Most commercial properties are shown to increase in value from year to year, which means the cost of taxes will also increase. While the landlord could contest the higher appraisal rate, many of them are not motivated to do so because the tenants are responsible for paying it.
Before signing any commercial lease it is a good idea to hire an attorney to look it over. Do not be afraid to ask about terms or language you do not understand.