In what type of lease is the tenant responsible for rent, property taxes, and utilities?

In a double net lease, the tenant is responsible for paying rent along with two specific additional costs: property taxes and insurance premiums. This type of lease structure allows the landlord to pass on some of the operating expenses of the property to the tenant beyond just the base rent.

Typically, the landlord retains responsibility for structural repairs and maintenance, meaning tenants can expect a level of oversight regarding fundamental upkeep. The double net lease is common in commercial real estate, where tenants may be more accustomed to managing some of these additional financial obligations.

In contrast, a gross lease encompasses all expenses in the rent amount, meaning tenants pay a fixed rent without direct responsibility for property taxes, insurance, or utility costs. A single net lease, on the other hand, usually requires the tenant to pay property taxes only, leaving the other expenses to the landlord. A full service lease is similar to a gross lease but often includes additional services like janitorial or maintenance, and all property-related costs, including utilities, are typically covered by the landlord. Thus, the double net lease distinctly requires the tenant to manage more of the operating costs associated with the property, making it the appropriate choice in this context.