Property Management

A net lease in commercial real estate typically requires the tenant to pay:

AOnly a flat rent with all expenses paid by the landlord
BBase rent plus some or all operating expenses such as taxes, insurance, and maintenance✓ Correct
CA percentage of gross sales revenue as the entire rent
DRent that increases automatically with the consumer price index

Explanation

In a net lease, the tenant pays base rent plus some or all operating expenses. A single net lease adds property taxes; a double net adds taxes and insurance; a triple net (NNN) adds taxes, insurance, and maintenance. Net leases are common in commercial real estate.

Related Iowa Property Management Questions

Practice More Iowa Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Iowa Quiz →