In a triple net lease, what expenses does the tenant typically pay for?

In a triple net lease, the tenant typically assumes responsibility for covering a substantial portion of the property-related expenses in addition to the base rent. These expenses include property taxes, insurance, and maintenance costs. This structure benefits landlords by ensuring that they are not burdened by operating expenses, as tenants are responsible for the upkeep and associated costs of the property.

The inclusion of these expenses in a triple net lease arrangement means that the tenant effectively has a more significant stake in the property's condition and operations, as their costs directly relate to the property's performance and upkeep. This understanding fosters a sense of accountability for the tenant, often resulting in better maintenance and management of the leased space.

On the other hand, tenants under a triple net lease should be aware that this arrangement can lead to variable costs and financial obligations that go beyond the fixed base rent, necessitating careful budgeting and financial planning.