What Is A Triple Net Lease? – San Diego Landlord-Tenant Attorney
Our office frequently represents both landlords and tenants in connection with commercial leases. We regularly draft, review and negotiate commercial lease agreements. Many of our commercial tenant clients, however, have never entered into a commercial lease before and ask us what it means when their lease is a triple net lease. As a result, we thought that it might be helpful to outline what exactly a triple net lease is and how it differs from other types of leases.
A triple net lease is a lease agreement whereby the tenant is responsible for not only rent and any other normal fees under the agreement (i.e. utilities), but also for the net real estate taxes on the leased premises, the net building insurance and the net common area maintenance and repairs. The term “triple net” derived its name because the of the tenant’s responsibility to pay for these three “nets.”
In contrast, in addition to rent and other normal fees under the agreement, a single net lease only requires the tenant to pay property taxes. A double net lease has the same tenant requirements as a single net lease, but with the additional responsibility that the tenant pay for building insurance.
At the VC Law Group, we frequently represent landlords and tenants in connection with commercial leases and often for flat fees. For more information, please contact us via phone at (858) 519-7333 or email at firstname.lastname@example.org.