In a triple net lease the tenant pays rent plus the property's taxes, insurance and maintenance, and the owner receives the rent net of those costs. So the owner's income leans on that one tenant.
What the video says
In real estate, a tenant can pay the building's bills. It's called a triple net lease. Three costs move to the tenant. Taxes. Insurance. Maintenance. Say a building costs one million a year to run. A plain lease charges four million, and the owner pays the costs. The owner keeps three. A triple net lease charges three, and the tenant pays the costs. Same three to the owner. Now costs double to two million. Under the plain lease, the owner's down to two. Under triple net, the owner still gets three. So why do investors care? The income can look steady. But it rests on that tenant paying. If the tenant goes, the rent goes, and the bills come back. You're not just buying a building. You're buying a tenant.
In the glossary: Triple net lease
A simple example with round numbers, not advice. Terms vary by fund.
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