What does a tenant pay in a triple net lease?

In a triple net lease, the tenant is responsible for paying not just the base rent, but also the three key expenses that the term implies: utilities, property taxes, and insurance. This arrangement significantly affects the overall cost of leasing a property, as the tenant must budget for these additional expenses.

By taking on property taxes, the tenant directly contributes to the local tax revenues that support community services and infrastructure. Moreover, the requirement to pay for insurance means the tenant is responsible for protecting the property against various risks, further integrating them into the financial management of the property. Lastly, including utilities in the tenant's responsibilities ensures that they are accountable for their consumption and usage patterns, promoting awareness around energy efficiency and cost management.

This comprehensive approach to leasing in a triple net arrangement allows landlords to maintain a predictable income without worrying about fluctuating operating costs, while tenants receive the benefit of understanding all their expenses upfront.