Lease Types (Net vs Gross)

Lease types describe how costs are shared between the landlord and tenant. In a net lease, the tenant pays base rent plus additional expenses like taxes, insurance, and maintenance—costs that are typically passed through to them. In a gross lease, the landlord covers most or all of those expenses, and the tenant pays a fixed rent. Net leases can be further divided into single, double, or triple net leases, depending on how many costs the tenant assumes. The choice affects the total cost and responsibilities for both parties, influencing long-term budgeting and risk.