Different Types of Leases

Lease Types*

NET Lease:  the lessee (tenant) pays the rent for occupancy and also pays maintenance and operating expenses such as taxes, insurance, utilities and repairs. The rent paid is said to be "net" to the lessor.

Single Net Lease:  the tenant is responsible for paying property taxes as well as the base rent.

Tenant/Lessee Pays - base rent, property taxes                      

Landlord/Lessor Pays - building insurance, building maintenance, other building expenses

Double Net Lease:  the tenant pays a base rent plus property taxes and building insurance.

Tenant/Lessee Pays -  base rent, property taxes, building insurance   

Landlord/Lessor Pays - building maintenance, other building expenses

Triple Net Lease:  the tenant pays a base rent plus property taxes, building insurance, and building maintenance.

Tenant/Lessee Pays - base rent, property taxes, building insurance, building maintenance

Landlord/Lessor Pays - other building expenses

GROSS Lease:  the lessee (tenant) pays the rent only

Tenant/Lessee Pays - base rent only (generally higher)        

Landlord/Lessor Pays - property taxes, building insurance, building maintenance, other building expenses

• ALWAYS seek the counsel of licensed or legal professionals with the expertise related to your transaction.