Property Management

In New York, a 'net lease' (also called a triple-net or NNN lease) in a commercial property means:

AThe tenant pays only base rent and the landlord pays all operating expenses
BThe tenant pays base rent plus some or all of the property's operating expenses (taxes, insurance, maintenance)✓ Correct
CThe landlord nets a specified amount after deducting all expenses
DThe lease term is open-ended with no specified end date

Explanation

In a net lease, the commercial tenant pays base rent plus some or all operating expenses of the property. A 'triple net' (NNN) lease requires the tenant to pay base rent plus real estate taxes, building insurance, and maintenance costs. This transfers most operating risk from the landlord to the tenant.

Related New York Property Management Questions

Practice More New York Real Estate Questions

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

Take the Free New York Quiz →