What is a Triple Net lease?

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WHAT IS A TRIPLE-NET LEASE?

A triple net lease is an agreement between the lessor and lessee that places the responsibility for taxes, maintenance, and insurance for a real estate property with the lessee. Under this type of lease, the tenant is responsible for any taxes that are levied on the property in addition to regular rent payments; this may mean taxes due to the local municipality or taxes imposed by the Federal government. In addition, tenants also assume any and all costs related to maintenance such as repairs due to damage caused by storms or general wear-and-tear to the structure. Lastly, all costs associated with insuring the premises must also be taken on by the tenant under a triple net lease. Thus, tenants renting under a triple net lease must accept the fact that additional taxes, maintenance and insurance costs are apart of their overall financial commitment in order to enjoy living in their home or running their business on leased properties.

Attorney Steve MAKE MILLIONS episodes. This episode features Triple Net Leases as Frontline Lisee looks to rent retail space for her "high-end consignment store" in Phoenix, Arizona.
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