In a net lease, who typically pays property taxes, insurance, and maintenance costs?

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Multiple Choice

In a net lease, who typically pays property taxes, insurance, and maintenance costs?

Explanation:
In a net lease, the tenant typically pays the ongoing operating expenses—property taxes, insurance, and maintenance. The “net” part means these costs are passed through to the tenant rather than being covered by the landlord, which is why the base rent is often lower than in a gross lease. In triple net leases, the tenant bears all three expenses; single or double net leases transfer one or two of these costs, but the tenant remains the payer of taxes, insurance, and maintenance. The government isn’t responsible, and this arrangement is what defines a net lease.

In a net lease, the tenant typically pays the ongoing operating expenses—property taxes, insurance, and maintenance. The “net” part means these costs are passed through to the tenant rather than being covered by the landlord, which is why the base rent is often lower than in a gross lease. In triple net leases, the tenant bears all three expenses; single or double net leases transfer one or two of these costs, but the tenant remains the payer of taxes, insurance, and maintenance. The government isn’t responsible, and this arrangement is what defines a net lease.

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