What is a requirement for a property subject to a triple net lease?

In a triple net lease, the tenant agrees to pay for several costs associated with the property in addition to the base rent. One of the fundamental aspects of this type of lease is that the tenant is responsible not only for the rent but also for property expenses that typically include utilities, property maintenance, property taxes, and insurance. This arrangement provides a predictable revenue stream for the landlord while transferring the operational expenses to the tenant.

Thus, when a property is subject to a triple net lease, a key requirement is that the tenant must indeed cover utilities and property maintenance, alongside other costs. This structure is beneficial for landlords because it limits their financial responsibility for the everyday operations and upkeep of their properties. By making the tenant responsible for these additional expenses, the landlord can focus on their investment without being burdened by the direct costs of managing the property.

In contrast, the other choices do not accurately reflect the fundamental nature of triple net leases. The landlord typically does not remain responsible for insurance or property taxes, nor are utilities exempt from the tenant's responsibilities. Therefore, recognizing the comprehensive obligations placed on tenants within a triple net lease provides clarity on the operational dynamics between landlords and tenants in such arrangements.