When the lessee pays the operating expenses, the insurance premiums and the real estate taxes, the lease is a net-net-net lease.
What does net net net mean in a lease?
In a triple net lease, also called a net-net-net lease, the renter is responsible for both the rent and the three additional costs. With net leases, rents are typically lower than with standard leases; the more the tenant's expenses, the lower the base rent the landlord will demand.
Is a triple net lease a good idea?
A cheaper base lease price is the most evident advantage of using a triple net lease for a tenant. A triple net lease has a lower monthly rent than a gross lease because the tenant is covering at least some of the taxes, insurance, and maintenance costs.
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