Net Lease

Net lease is a property rental agreement in which the tenants are required to pay a significant portion of a property’s expenses. These expenses are usually associated with the cost of property ownership such as utilities, insurance, maintenance and taxes.

Property Insurance

Property Insurance

This type of lease is the exact opposite of gross lease, in which the landlord is the one who assumes the expenses. Net lease is usually used in commercial leasing cases, wherein the expenses of the tenants vary greatly. A good example would be an industrial tenant that uses a great amount of electricity. This type of lease can be a bit expensive on the part of the tenant, but it is surely fair for both landlords and tenants.


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