Definition of 'Net Lease'
There are two main types of net leases: triple net leases and double net leases. In a triple net lease, the tenant is responsible for all operating expenses, including taxes, insurance, and maintenance. In a double net lease, the tenant is responsible for all operating expenses except for taxes.
Net leases can be beneficial for tenants because they give them more control over their costs. However, they can also be more expensive than other types of leases, as the tenant is responsible for all operating expenses.
Before signing a net lease, it is important to carefully review the terms of the lease to make sure that you understand all of your obligations. You should also make sure that you have the financial resources to cover all of the operating expenses that you will be responsible for.
Here are some of the pros and cons of net leases:
* Tenant has more control over costs
* Tenant can make improvements to the property without landlord's approval
* Tenant can sublease the property
* Tenant is responsible for all operating expenses
* Tenant may be responsible for major repairs
* Tenant may have to pay a higher rent than with other types of leases
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.