Navnit.... It means that the proportionate annual charges for property taxes ("N-1"); property insurance ("N-2"); and, common area maintenance ("N-3") is in addition to the base rental amount listed.
The "triple-net" charges are budgeted on an annual basis and charged back through on a monthly per square foot collection. At the end of each year, usually presented by March 1st at the latest of the following year, reconciliation is provided. If too little was collected a supplemental bill is submitted to the tenant. If too much was collected a credit is given to the current year’s collection. This is the common approach. There may be hybrids of this from property to property, depending on the terms of the leases written for a property. Good luck Navnit..... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: robertbaird@NewportCpC.com
Feb 25, 2011