A property that is leased on a NNN basis means that the tenant or lessee is required to pay all the expenses associated with the property including building insurance, real estate taxes and maintenance that would normally be paid by the landlord; these payments are made in addition to the usual charges of rent and utilities.
NNN properties have the advantage of providing steady income returns with reduced risk for the landlord. They offer long-term, stable income while the property increases in value due to capital appreciation. It means investors can invest in quality real estate without having to concern themselves with tenant and improvement costs or leasing fees. Investors in these types of properties must have a verified net worth of at least $1 million, excluding the value of their primary residence, or have income of over $200,000 annually.