After years of managing tenants and repairs, many owners want their equity to keep earning — without the phone calls. Here's what a triple-net property can offer.
In a triple-net lease, the tenant typically pays the property taxes, insurance, and maintenance on top of rent. You're no longer the one fielding repair calls, screening applicants, or filling vacancies.
We focus on properties leased to established national and regional companies, where the lease is backed by the corporation rather than one individual or a local franchise operator.
Net leases often run 10 to 25 years, with scheduled rent increases built into the lease. That makes income easier to plan around than month-to-month or annual residential leases.
Reinvesting through a 1031 exchange can defer capital gains and depreciation recapture taxes, so your full equity stays invested instead of going to a tax bill at sale.
One professionally leased property can be easier for heirs to hold than several rentals that need hands-on management. Talk with your estate attorney about how it fits your plan.
Because you aren't managing it, your next property doesn't need to be nearby. You can look nationwide for the right tenant, lease, and market.
| Residential / multifamily rental | Triple-net (NNN) property | Delaware Statutory Trust (DST) | |
|---|---|---|---|
| What you own | The whole property | The whole property | A fractional interest in one or more larger properties (a security) |
| Who pays taxes & insurance | You | Typically the tenant | Paid at the property level by the tenant or trust |
| Repairs & maintenance | You or your property manager | Typically the tenant (varies by lease) | The sponsor's asset and property managers |
| Lease length | Month-to-month to 1 year | Often 10 – 25 years | Depends on the underlying properties |
| Decision-making | Full control | Full control as owner | None — the sponsor makes all decisions |
| Your time | Ongoing, hands-on | Minimal | None |
DSTs are securities, generally available only to accredited investors, and involve risks including illiquidity and possible loss of principal. Graystone Capital Advisors does not offer or sell securities.
Net lease isn't risk-free. Part of our job is making sure you go in with clear eyes.
Your income depends on one tenant's ability to keep paying.
If the tenant leaves, finding a replacement can take time and money.
Some leases leave the roof or structure to the owner. Details matter.
A strong tenant doesn't make up for overpaying or a weak site.
Some leases have small or infrequent increases that may not keep pace with inflation.
Loan terms affect your returns, and selling a single property can take time.