Property Management

In Minnesota, a commercial landlord who enters into a triple-net lease benefits from which of the following?

AThe obligation to pay all property taxes
BMore predictable and passive income because the tenant pays most operating expenses✓ Correct
CThe right to terminate the lease at any time
DGuaranteed rent increases each year

Explanation

Triple-net leases benefit commercial landlords by shifting most operating expenses (taxes, insurance, maintenance) to the tenant, providing the landlord with more predictable, passive net income. The landlord essentially receives a check without most of the management headaches of a gross lease arrangement.

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