the landlord (you).
NET LEASE
These types of leases are highly adjustable. The base rent for a net lease is lower than a full-service lease. This is because the tenant is responsible for operating expenses that can fluctuate. It can include property taxes, property insurance, repairs, maintenance work, trash collection, landscaping, parking, water, electricity, sewer, and any shared-space services. There can be benefits for this type of lease if they have the right office situation. There can also be negatives. Owners use a few types of different net leases.
SINGLE NET LEASE
The tenant pays a fixed rate plus a share of the property taxes. In some situations, that percentage of the property taxes can be negotiated with the landlord. The tenant is directly responsible for janitorial services and utilities while the landlord pays the other costs associated with the property. While the property taxes are built into the rent and could fluctuate, you have to pay the other two costs separately. What those costs are will determine if this style of lease costs less or more than a full-service lease.
DOUBLE NET LEASE
This is almost the same thing as a single net lease, with one more addition. The tenant is also responsible for property insurance, as well as the property taxes. It is built into the lease as well. Once again, the tenant is responsible for paying utilities and janitorial services.
177
Powered by FlippingBook