In which type of lease does the tenant pay all operating expenses but exclude structural repairs?

In the context of real estate leases, a net-net lease is a type of lease where the tenant agrees to pay property taxes and insurance in addition to the base rent, typically covering most operating expenses. This type of lease structure often means that structural repairs are the responsibility of the landlord, while the tenant takes on other costs.

In a net-net lease, both the owner and the tenant have clear expectations regarding expenses, promoting transparency in property management. The burden of operating expenses usually falls on the tenant, which can result in a lower base rent compared to a gross lease that typically includes all costs in one payment.

Understanding the nuances of these lease types is important for property management, allowing for precise financial planning and management strategies.