What does a Triple Net Lease require the tenant to pay?

A Triple Net Lease, commonly referred to as an NNN lease, requires the tenant to pay not only the base rent but also additional expenses associated with the property. Specifically, under a Triple Net Lease, the tenant is responsible for property taxes, maintenance and repair costs, and insurance premiums. This type of lease structure transfers a significant portion of the financial responsibilities from the landlord to the tenant.

Understanding this lease arrangement is crucial for both landlords and tenants. For landlords, it means reduced management burden and more predictable income, while for tenants, it signifies that their financial obligations extend beyond simple rent payments to encompass the operational costs of the property. The tenant's obligation to cover these costs becomes an integral part of the lease agreement, thereby emphasizing the need for tenants to carefully evaluate these liabilities when entering into such leases.