<--Back to Wiki Home

Define Net Lease in Real Estate

Net Lease: 

A "net lease" is when someone rents a property and agrees to pay some of the expenses associated with it. This could include things like property taxes, maintenance costs, or insurance. Depending on the agreement, the tenant might be responsible for all of these costs or just a portion of them.

Example: 

For example, let's say you want to rent a space for your business. The landlord offers you a net lease, which means you'll be responsible for paying a portion of the property taxes and maintenance costs in addition to your monthly rent.

"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

A "net lease" is when you rent a space,
But there's more to pay than just the base.
Expenses like taxes and upkeep too,
Could be the tenant's responsibility to pursue!

Part or all of the costs could be yours to bear,
Depending on what you and the landlord do declare.
It's important to know what you'll share,
Before you sign, so you're aware!

So if you're renting a space, be sure to ask,
If there's more to pay, it's an important task!
A net lease could be the deal to bask,
But be clear on the expenses you'll unmask!