Net Lease

A net lease is a type of rental agreement where the tenant pays not only the rent but also some or all of the property's ongoing expenses, such as property taxes, insurance, and maintenance costs. This arrangement shifts certain costs from the landlord to the tenant, often resulting in lower base rent for the tenant. Net leases are common in commercial real estate and are valued for providing predictable income for landlords while giving tenants control over specific expenses. The specific responsibilities vary depending on the lease type—single, double, or triple net lease.