net lease

Net lease

A lease arrangement under which the lessee is responsible for all property taxes, maintenance expenses, insurance, and other costs associated with keeping the asset in good working condition.

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net lease

A lease in which the costs of maintaining the asset, including taxes and insurance, are paid by the lessee. Compare gross lease.

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net lease

A lease in which the tenant pays rent plus some portion of the maintenance and operating expenses of a property.The term triple net lease means the tenant pays all expenses associated with the property—maintenance, repairs, insurance, and real estate taxes. Beyond that, though, the expression net lease has no particular definition regarding the tenant's exact responsibilities. Every lease will be different and should be scrutinized for exact tenant expenses.One should always obtain a detailed list of expenses that are within the landlord's control,such as office overhead and salaries. Otherwise, expenses may increase dramatically merely because the owner's son-in-law, for example,has been given a high-paying job for mowing the lawn each week.