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What is a Double Net Lease?

Double Net Lease A double net lease is a commercial lease agreement where the tenant pays rent along with property taxes and insurance costs.

What Expenses Does the Tenant Pay?

  • Base rental amount.
  • Property taxes.
  • Building insurance premiums.
  • Certain agreed operating costs.

Why Is This Lease Structure Used?

  • Reduces landlord expenses.
  • Provides predictable rental income.
  • Encourages tenant responsibility.
  • Common in commercial properties.

A double net lease transfers specific property expenses to tenants, helping landlords reduce operating costs while maintaining steady rental income.

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