In a triple net lease, who is responsible for covering property taxes?

In a triple net lease, the tenant assumes the responsibility for not only paying the base rent but also covering specific additional expenses associated with the property. These expenses typically include property taxes, insurance, and maintenance costs. This type of lease structure places the financial burden of these operational costs on the tenant rather than the landlord.

This arrangement is beneficial for landlords, as it provides them with a predictable income stream while transferring the risk and responsibility of property expenses to tenants. Tenants, on the other hand, often prefer this setup as it allows for potentially lower rent prices, with the understanding that they will take on the additional costs directly related to managing the property. This responsibility for property taxes is a fundamental aspect of the triple net lease structure and is critical for tenants to understand before entering into such agreements.