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Understanding single, double, and triple net leases

On Behalf of | Jan 5, 2023 | Real Estate

Leasing commercial property in Florida is more common than purchasing. Business owners that are just starting out or those who want a specific location will opt to lease instead of buying so that they can achieve their goals.

Before signing a lease, however, you should know the three types of leases offered by property owners and what they mean for your business.

Single Net Lease

A single net lease is one of the least common types of leases available. With this type of lease, the tenant pays rent and property taxes. Rent is generally lower because of the tax burden, but the landlord is still responsible for the taxes if the tenant does not pay.

Double Net Lease

A double net lease is the most common commercial lease. Tenants pay rent, property taxes, and insurance on the property. Rent is generally lower because of the additional expenses placed on the tenant. All property maintenance is the responsibility of the landlord.

Triple Net Lease

A triple net lease relieves the landlord of almost all obligations. The rent is very low, but the tenant covers the property’s insurance, taxes, and maintenance. This type of lease is often disputed when the tenant realizes how much maintenance costs are for the property.

Clarify The Type Of Lease Before Signing

If you are looking for a new commercial property to lease, you must understand what type of lease the landlord is offering. Knowing what is expected of you and your costs as a tenant can help eliminate real estate disputes in the future. If you are unsure about the lease terms or your obligations, speak with an attorney about the contract before signing.