Property Management

What does 'net lease' mean in Rhode Island commercial property management?

AThe tenant pays only a flat monthly rent with no additional charges
BThe tenant pays base rent plus some or all operating expenses such as taxes, insurance, and maintenance✓ Correct
CThe landlord retains all income after expenses
DThe lease requires the tenant to maintain net operating income standards

Explanation

A net lease requires the tenant to pay base rent plus some or all of the property's operating expenses (taxes, insurance, maintenance). Single net, double net (NN), and triple net (NNN) leases differ in how many expense categories the tenant absorbs.

Related Rhode Island Property Management Questions

Practice More Rhode Island Real Estate Questions

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

Take the Free Rhode Island Quiz →