net lease

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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.

Net Lease

A lease in which the lessee pays the lessor (the property owner) a flat fee at agreed-upon intervals (usually once per month), and, in addition, some or all of the taxes, utilities, and maintenance due on the leased property. That is, the lessee becomes responsible for at least some of the duties of ownership of the leased property. See also: Triple Net Lease, Gross Lease.

net lease

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

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.

References in periodicals archive ?
M2 EQUITYBITES-December 14, 2016-Proxy Advisors ISS, Glass Lewis Recommend Global Net Lease Shareholders Support USD 247m Acquisition
As interest rates rise, the value of your triple net lease property may decline, this is especially important when using a triple net lease property in a 1031 exchange, while looking for another property to exchange into.
com)-- Randy Blankstein, President of national net lease advisory firm The Boulder Group, will be a featured speaker on ICSC's N3 Triple Net Lease Panel in Chicago on October 7th, 2015.
NYSE: GNL) has signed definitive agreements to acquire 12 net lease properties through five separate transactions for a total purchase price of approximately USD 88.
Typically, the lessee enters into a net lease for a long period of time, often consistent with the term of the mortgage loan.
But is property subject to a net lease considered used in a business or investment property?
has reached its second half 2015 investment goal of $200 million by completing the acquisition of five net lease properties in two separate transactions for approximately $110.
M2 EQUITYBITES-August 3, 2015-Global Net Lease Inks Deals to Buy 12 Properties for USD 92.
com)-- Randy Blankstein, President of national net lease advisory firm The Boulder Group, will be the conference chair of Midwest Real Estate News Magazine's Midwest Net Lease Summit Conference in Chicago on August 19th, 2015.
Drugstores saw a 50-basis-point premium compared with the entire net lease retail market in the second quarter.
However, in Letter Ruling 9404016, the Service held that rents from a net lease of personal property were not deemed "passive investment income.