Net Leases
A net lease is a type of commercial real estate lease where the tenant agrees to pay not only the rent but also some or all of the property expenses. These expenses can include property taxes, insurance, and maintenance costs. There are different types of net leases, such as single, double, and triple net leases, which specify the extent of the tenant's financial responsibilities.
In a single net lease, the tenant pays rent plus property taxes. In a double net lease, the tenant covers rent, property taxes, and insurance. A triple net lease requires the tenant to pay rent along with property taxes, insurance, and maintenance costs. This arrangement can benefit landlords by providing a more predictable income stream.