Net leased investments have a set of notable advantages and drawbacks. Being aware of these pros and cons is crucial to avoid wasting your money. If youre planning to make an investment, you need to consider several important things to maximize the benefits and reduce the risks.
You must make sure that you are 100 percent prepared to invest a lot of money into something. Before investing on a property, you have to determine what you want to do with it. If you just want to occupy a unit, you better think twice before investing on it. Youre better off investing on it then renting it out to other people for profit, especially if its a triple net leased investment.
You should also check the property before you sign any contract. Do not close the deal without conducting a full inspection of the property, otherwise youll find yourself facing unexpected problems. Check for plumbing and electrical wiring problems, damages on walls, or anything that needs to be fixed. If the property is poorly maintained, look for a better one.
Before making any net leased investments, its also important for you to discuss things with your family members or a trusted attorney. This will greatly help you avoid making poor decisions regarding the actual investment process. Although family members will sincerely look out for you and your investment, an attorney might be giving advice just to get paid, so its important to make sure that your attorney sincerely means well.
To make the most out of your investment, consider nearby establishments and facilities. Good net leased investments should be near schools, markets, or offices. One of the main reasons why people rent property is to enjoy better access to these places, so they are more likely to rent your residential units if the property is highly accessible.
Because of recent environmental concerns, you should probably consider following up net leased investments with eco-friendly retrofitting. These days, more and more people are preferring eco-friendly units over conventional ones. Furthermore, since eco-friendly retrofitting greatly reduces monthly utility bills, tenants get to pay lower bills, which can encourage them to stay in your units and renew their contracts.