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Leasing & Property Management term

Net Lease

A lease in which the tenant pays base rent plus some or all of the property's operating expenses.

Why Net Lease matters on the exam

This term belongs to Leasing & Property Management. The questions below are real items from Freehold's bank that use it - each one cites its source.

Exam questions using Net Lease

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Under a triple net (NNN) lease, the tenant pays base rent plus:

  1. Property taxes, insurance, and maintenance
  2. Only utilities and janitorial costs
  3. A percentage of gross sales
  4. The landlord's mortgage payment
Show answer & explanation

Property taxes, insurance, and maintenance — A triple net lease passes the three major operating costs — property taxes, insurance, and maintenance — through to the tenant on top of base rent, common in commercial single-tenant properties.

Source: PSI National Real Estate Exam Content Outline §8 Leasing & Property Management

In a single net lease, the tenant typically pays base rent plus which additional expense?

  1. Property taxes and building insurance
  2. No additional expenses beyond base rent
  3. Property taxes only
  4. Property taxes, insurance, and maintenance
Show answer & explanation

Property taxes only — A single net lease shifts just one operating expense, typically property taxes, onto the tenant in addition to base rent, while the landlord continues to pay insurance and maintenance.

Source: PSI National Real Estate Exam Content Outline §8 Leasing & Property Management

A tenant under a double net (NN) lease pays base rent plus which two expenses, while the landlord remains responsible for structural maintenance?

  1. Building insurance and maintenance
  2. Taxes and maintenance
  3. Utilities and janitorial service
  4. Property taxes and insurance
Show answer & explanation

Property taxes and insurance — A double net lease passes property taxes and building insurance through to the tenant on top of base rent, but the landlord typically still covers structural repairs and maintenance.

Source: PSI National Real Estate Exam Content Outline §8 Leasing & Property Management

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