Net Lease – David Reecher
A net lease is an agreement for a tenant to pay a base amount plus a portion of the operating expenses of a property. When the tenant is the sole occupant of the property, the lease may require them to handle all expenses. When the tenant is one of two or more in the property, the lease will indicate their portion of the operating expenses. The term net lease refers to the fact that the tenant is bearing the operating cost of the property, leaving the property owner with a lease payment that requires no operating expenses taken out. Common types of net leases include the single, double, and triple. With a single net lease, the tenant pays property taxes plus their regular rent. In a double, the tenant pays rent plus property taxes and building insurance. In the triple, the tenant bears the cost of taxes, insurance, and maintenance.