NNN Lease and Tenant Paying Rents and Other Expenses Yearly

[Cornelius Amos]

Would it be unusual for a tenant with a NNN to pay their rent, insurance, tax, and other expenses associated with their NNN lease in one yearly payment?

[Ronald Rohde]

Quote from @Evan Polaski:

@Cornelius Amos, if the property has a mortgage on it, it may not be allowed.  Most of my commercial experience is in multi-tenant retail, and all had mortgages.  There were specific mortgage covenants that did not allow for the collection of more than one month of rent in advance.  Way to protect bank from landlord taking a huge chunk of cash and abandoning property.

In your post you mention rent and other expenses.  Insurance and taxes are not uncommon for national tenants to reimburse when the actual bill is issued, versus escrow monthly like the mom and pops, but in my experiences, any tenant paying a year of rent up front is not common.

 To be technical, you can transfer the funds into an escrow account that isn't "receiving funds in advance" the bank/lender is happy to accommodate that.