Net lease
National Real Estate Exam glossary · Leasing/Management
Definition
A lease in which the tenant pays base rent plus some or all of the property's operating expenses (taxes, insurance, maintenance). A triple-net lease shifts all three expense categories to the tenant.
Net lease in plain English
When you rent a place, someone has to pay for the boring stuff that keeps it running: property taxes, insurance, and repairs. A "net lease" means the tenant pays the base rent PLUS some of those extra costs, instead of the landlord covering them. Think of renting an apartment where you also have to pay the building's tax and insurance bills on top of your monthly rent. A "triple-net" lease is the most extreme version: the tenant picks up all three (taxes, insurance, and maintenance), so the landlord just collects a clean rent check and worries about nothing.
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