Triple-Net Lease

Triple-net lease is a type of net lease in which the tenant or the lessee is solely responsible for the payment of all the costs relating to the ownership of the property or the asset being leased. This means that in addition to the normal rent fee, the tenant has to pay for the property’s three “nets” (that is why it is called triple-net lease).

Real Estate Tax

These nets are the net real estate taxes, the net building insurance and the net maintenance. This type of rental agreement may seem to appear like putting a lot of financial burden on the shoulder of tenant. But do not be discouraged though because a triple-net lease generally has a lower rental rate than a standard lease agreement since the cost is covered by the tenant.