What is a triple net lease?

A triple net lease is indeed characterized by the tenant's responsibility to cover not just the rent, but also additional expenses associated with the property. Specifically, under this type of lease, the tenant is obligated to pay for property taxes, property insurance, and maintenance costs, in addition to the base rent. This structure provides the landlord with a predictable income stream since the financial burden of these recurrent costs is shifted to the tenant.

In contrast to other types of lease agreements, a triple net lease gives landlords a clearer separation from the operational costs of the property. This can be particularly advantageous for landlords who wish to minimize their administrative and financial responsibilities related to the leased property.