Property Management
A Kentucky commercial lease with a triple net (NNN) structure means the tenant pays:
ABase rent only, with landlord paying all expenses
BBase rent plus their proportionate share of property taxes, insurance, and maintenance✓ Correct
CBase rent plus utilities only
DA fixed gross amount covering all expenses
Explanation
In a triple net (NNN) lease, the tenant pays base rent plus three categories of operating expenses: property taxes, building insurance, and maintenance. This shifts most property operating costs to the tenant and is common in commercial real estate.
People Also Study
Related Kentucky Questions
- A gross lease in Kentucky means the tenant pays:Property Management
- A Kentucky commercial lease provision known as a 'percentage rent' clause requires the tenant to pay:Property Management
- A Kentucky commercial lease that requires the tenant to pay a set percentage of sales as rent is called a:Property Management
- In Kentucky, a triple net (NNN) lease requires the commercial tenant to pay:Property Management
- A Kentucky commercial building has a potential gross income of $120,000. Vacancy and collection loss is 6%. Operating expenses are $45,000. What is the NOI?Property Valuation
- A commercial property generates $8,500 per month in gross rent. Annual operating expenses are $42,000. What is the annual NOI?Real Estate Math
- A Kentucky landlord received $18,000 in annual rent. Operating expenses were $5,400. The property was purchased for $150,000. What is the overall return on investment (ROI)?Real Estate Math
- A 6,000 sq ft Kentucky commercial building rents at $18 per sq ft annually. What is the annual gross rent?Real Estate Math
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Study This Topic
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →