Triple net lease (NNN)

Read the expense schedule beyond the lease label

Start with base rent, the premises and the actual expense schedule. Common shorthand adds property taxes under a single-net lease, insurance under double-net, and specified maintenance or operating costs under triple-net. NAR's property-management resources describe these cost categories. Negotiated definitions and exclusions matter more than the number of Ns; the label does not mean every tenant pays every property cost.

Identify direct payments versus reimbursements, any proportionate share, included common-area work, exclusions, caps and adjustments. Review roof, structure, major equipment and capital replacements explicitly. State the budget period, supporting invoices, estimates, reconciliation, review rights and payment dates in the appropriate agreement. Distinguish a cost allocation from authority to perform work, alter the premises or choose insurance; have uncertain responsibilities reviewed by qualified commercial advisers.

Compare complete occupancy costs and difficult scenarios, including rising taxes or premiums, unexpected repairs, vacancy and default. Allocating expenses does not guarantee stable collections, a standard lease duration or a hands-off investment. Keep executed documents, expense records and later changes together, using the lease-summary guide to trace important terms to their source. Commercial shorthand does not authorize shifting residential housing duties, and this definition does not establish commercial lease drafting or expense reconciliation services in Rentari.