In a net lease, what does the tenant pay for besides base rent?

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

In a net lease, the tenant is typically responsible for paying not only the base rent but also certain additional expenses associated with the property. The correct choice outlines that, in addition to base rent, the tenant covers costs related to HVAC (heating, ventilation, and air conditioning), lighting, and property tax.

This structure is designed so that the owner or landlord can maintain a more predictable income stream while transferring some of the financial responsibilities of property operation to the tenant. By including expenses such as HVAC and lighting, which are essential for the everyday functioning of the property, and property taxes, which are a fixed obligation for property ownership, the lease clearly delineates these responsibilities.

This understanding is significant as it highlights the operational costs that can substantially impact a tenant's financial obligations beyond the mere rent amount, creating a more comprehensive picture of leasing commercial properties.

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