- Net Lease
A provision that requires the tenant to pay a portion or all of the taxes, fees and maintenance costs for the property in addition to rent. Net lease requirements are most commonly used with commercial real estate. There are three primary types of net leases: single (net), double (net-net) and triple (net-net-net).
Also referred to as a closed-end lease.
Property owners use net leases in order to shift the burden of managing taxes, insurance and fees to the tenant, and may charge less rent as a result. Though potential tenants may not have to pay as much rent they are still required to pay taxes and fees regardless of how well their business performs, making this an added risk.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
net lease — see lease Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. net lease … Law dictionary
Net lease — Contents 1 Types of net leases 1.1 Single net lease 1.2 Double net lease … Wikipedia
net lease — Leases that require the lessee to pay expenses. For real estate leases, see triple net. For personal property leases, a net lease is a lease that requires the customer/lessee to pay for the insurance, maintenance, and all taxes, if any, levied on … Financial and business terms
net lease — noun Etymology: net (III) : a lease requiring the lessee to assume all operating expenses (as maintenance, insurance, taxes) in addition to the payment of rent … Useful english dictionary
net lease — Fin a lease that requires the lessee to pay for things that the owner usually pays for. See also gross lease … The ultimate business dictionary
Net lease — A lease arrangement under which the lessee is responsible for all property taxes, maintenance expenses, insurance, and other costs associated with keeping the asset in good working condition. The New York Times Financial Glossary … Financial and business terms
net lease — noun An agreement that requires the tenant to pay, in addition to the fixed rent, all of the property expenses which normally would be paid by the owner. For US real property these include real estate taxes, insurance, maintenance, repairs and… … Wiktionary
net-net-net lease — triple net lease, Also known as net net net lease or NNN lease. A net lease where the tenant typically pays: • Base rent. • Real property taxes. • Building insurance. • Maintenance costs … Law dictionary
net-net lease — USA double net lease, Also known as net net lease or NN lease. A net lease where the tenant typically pays: • Base rent. • Real property taxes. • Insurance costs … Law dictionary
triple net lease — See: net lease Category: Real Estate & Rental Property → Renters & Tenants Rights Nolo’s Plain English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009. trip … Law dictionary