Property Management

A South Dakota commercial lease that requires the tenant to pay a base rent plus a portion of the property's operating expenses (taxes, insurance, maintenance) is a:

AGross lease
BNet lease✓ Correct
CPercentage lease
DGraduated lease

Explanation

A net lease requires the tenant to pay base rent plus some or all of the property's operating expenses. A single net lease adds taxes; a double net adds taxes and insurance; a triple net (NNN) lease adds taxes, insurance, and maintenance — all in addition to base rent.

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