Property ManagementIntermediateCalifornia Exam

A commercial property manager is negotiating a lease for a retail tenant. Which lease type requires the tenant to pay base rent plus a share of property taxes, insurance, and operating expenses?

AGross lease
BNet leaseCorrect
CPercentage lease
DGround lease

Why Net lease Is Correct

Answer B: Net lease

A net lease (and its variations — single net, double net, triple net/NNN) requires the tenant to pay base rent plus some or all of the property's operating expenses. In a triple-net (NNN) lease the tenant pays taxes, insurance, and maintenance in addition to base rent, which is common in commercial and retail properties.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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