In a triple net lease (NNN), which of the following expenses is the tenant typically responsible for?
Correct Answer
C) Property taxes, insurance, and maintenance
In a triple net lease, the tenant pays the base rent plus the three 'nets': property taxes, building insurance, and maintenance/repairs. This shifts most property operating expenses from the landlord to the tenant.
Why This Is the Correct Answer
Option C correctly identifies the three core components of a triple net lease: property taxes, insurance, and maintenance. In NNN arrangements, tenants pay base rent plus these three 'nets,' which represent the primary operating expenses of commercial properties. This structure is standard across Canadian commercial real estate markets and is governed by provincial commercial tenancy legislation. The tenant assumes responsibility for these expenses in addition to base rent, making them responsible for the property's operational costs while the landlord retains ownership obligations.
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