In a triple-net lease, what does the tenant pay for?

In a triple-net lease, the tenant is responsible for paying not just the base rent but also the property-related expenses, which typically include taxes, insurance, and maintenance. This type of lease structure means that the landlord can receive a more predictable income stream since the tenant covers these additional costs associated with the property.

By taking on these extra financial responsibilities, tenants often negotiate lower base rent amounts, but they must budget for these variable costs, which can fluctuate over time. This arrangement is beneficial to landlords as it transfers the risk of these expenses to the tenant, who becomes more invested in the upkeep and financial health of the property.

In contrast, other leasing structures, such as gross leases, would typically see the landlord absorbing these expenses, with tenants only paying rent. Understanding the implications of a triple-net lease is crucial for both property owners and tenants when negotiating and fulfilling lease agreements.