Rentana Knowledge Base

A double net lease is a popular agreement in commercial real estate. The tenant assumes responsibility for property taxes and insurance, along with base rent payments.

This setup can be advantageous for tenants who prefer more control over certain expenses. Meanwhile, lessors benefit from reduced management duties related to these costs.

In a double net lease, the tenant covers property taxes and insurance, shifting part of the financial and administrative burden from the landlord.

This type of net lease positions tenants in a role where they handle two specific financial obligations. This fosters a potentially more predictable financial environment for the landlord.

For those entering into a lease agreement, understanding how a double net lease functions is fundamental to making informed decisions about property occupancy.

Both parties—tenant and landlord—must clearly define terms at the outset to ensure all obligations are transparent and manageable. This creates a mutually beneficial arrangement that aligns financial expectations and responsibilities in the world of commercial real estate.