What does a net lease require the tenant to pay in addition to base rent?

A net lease is a common type of commercial real estate lease that requires the tenant to pay not only the base rent but also additional expenses associated with the property. These additional expenses typically include property taxes, insurance, and maintenance costs, which may encompass utilities and repairs.

By requiring the tenant to cover these additional expenses, the landlord is effectively transferring some of the financial responsibilities of property ownership onto the tenant. This arrangement can be beneficial for landlords who want to ensure that the costs of maintaining the property and compliance with local tax regulations are managed by the tenant rather than the landlord.

In contrast, options that suggest the tenant only pays for taxes, just structural repairs, or nothing extra do not fully capture the essence of a net lease, as they ignore the broader scope of expenses that might fall under the tenant's responsibilities in such an agreement. Understanding the concept of a net lease is essential for both property managers and tenants to ensure clarity on financial obligations throughout the lease term.