Net Lease

Definition: A net lease requires the tenant to pay base rent plus specified property expenses, such as taxes, insurance, or maintenance.

Example

A commercial lease requires $2,000 monthly base rent plus the tenant’s agreed share of property taxes and insurance.

Keep the distinction clear

Different net leases shift different expenses. Do not assume a net tenant owns the property or must pay every repair; the actual lease defines the allocation.

Related terms

Gross Lease · Percentage Lease · Lease

Keep studying

Property Manager Duties: The Owner, the Agreement, and the Property

References: Cornell LII: net lease

Pronunciation (US): NET LEES (capitals show stress)

Pronunciation reference: Merriam-Webster