Another name for a triple net lease is?

Prepare for the RECA Property Management Exam with multiple choice questions that offer hints and explanations. Ace your exam!

A triple net lease, often referred to as a "tenant pay all lease," is structured in such a way that the tenant is responsible not only for the base rent but also for all operating expenses associated with the property. This typically includes property taxes, insurance, and maintenance costs. This arrangement allows landlords to have predictable cash flows and minimizes their responsibilities related to property management, which can be particularly appealing in commercial real estate settings.

The other options do not accurately describe a triple net lease. A base lease generally refers to the foundational rent amount without additional tenant responsibilities, an absolute lease implies a similar structure to a triple net lease but is not commonly used, and a modified gross lease indicates shared responsibilities between landlord and tenant, which differs significantly from the all-inclusive expense obligation of a triple net lease. Therefore, identifying a triple net lease as a "tenant pay all lease" correctly conveys its primary characteristic and landlord-tenant financial arrangement.

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