A net lease is a commercial lease agreement where the tenant pays base rent and some or all property-related expenses, such as taxes and maintenance. It benefits both landlords and tenants. Tenants have more control over operational expenses and are frequently responsible for property maintenance, while landlords benefit from consistent rental income and fewer property management duties. Let us learn more about net lease in the blog below.

A net lease is a legal contract for leasing commercial real estate. In this type of lease agreement, the tenant pays for both the rental space and additional expenses that may include:

- Utilities

• Repairs
• Property taxes
• Insurance
• Landscaping
• Snow removal
  
  Net leases are very appealing to landlords because landlords can split the property’s costs with the tenant. Tenants may also benefit from net leases because typically rent payments are lower due to the additional costs associated with the lease.
  
  There are four different types of net lease:
  
  - Single net lease
• Double net lease
• Triple net lease
• Modified net lease
  
  Triple net leases are the most common type of net lease, and often if you hear the term “net lease,” it refers to a triple net lease.
  
  Net leases are negotiable, and it is crucial to ensure that all aspects of the agreement are documented in a detailed lease agreement. Tenants can include caps on their net lease agreement that set a maximum amount they are responsible for paying.
  
  Click here for more information about net leases.
  
  Difference Between Gross Lease and Net Lease
  
  A gross lease, sometimes called a “full-service lease,” is the opposite of a net lease and is most commonly found in residential real estate or when a single building shares multiple tenants. In a gross lease, tenants are only responsible for a set rent payment, and then the property owner is responsible for all additional fees and expenses. Some gross leases will stipulate that the tenant is required to pay utilities