Property Management

A NH commercial property manager negotiates a 'triple net (NNN) lease' for a retail tenant. Under a NNN lease, the tenant pays:

AOnly the base rent
BBase rent plus their proportionate share of property taxes, building insurance, and maintenance✓ Correct
CBase rent plus utilities only
DA percentage of gross sales as the entire rent

Explanation

A triple net (NNN) lease requires tenants to pay base rent plus three categories of operating costs: property taxes (net), building insurance (net), and maintenance/repairs (net). This transfers most property operating costs to the tenant, providing the landlord with a more predictable net income.

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