Net Leases Of Investment Real Estate Not All They Are Cracked Up To Be

May 30, 2023

Two basic types of leases are used for investment real estate: a net lease and a gross lease. Net leases are commonly used in connection with retail properties, many industrial and some office properties. With a net lease, the owner/landlord receives the rent net of expenses. The owner does not bear most property expenses – the tenant typically is responsible for expenses. In a customary triple net lease, the tenant is responsible for taxes, insurance, maintenance and repairs. There are many variations, such as absolute and double net, where the tenant bears more or less of the expenses.

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