What does a triple net lease entail for the tenant?

A triple net lease, commonly referred to as an NNN lease, requires the tenant to pay not only the base rent but also all operating expenses associated with the property. This typically includes property taxes, insurance, and maintenance costs. In this type of lease, the landlord is often relieved of the financial responsibility for these expenses, thus shifting the burden to the tenant.

This arrangement is particularly advantageous for landlords seeking more predictable revenue and less involvement in the property management process. It also provides tenants with a clearer picture of their total occupancy costs, as they know they are responsible for these additional expenses upfront.

Understanding the implications of a triple net lease is crucial for both tenants and landlords, as it affects financial planning and cash flow management. The other options suggest scenarios where either the tenant has reduced responsibilities or where additional costs are not included, which does not accurately reflect the obligations that come with a triple net lease structure.