In a triple net lease (NNN), which of the following expenses is the tenant typically NOT responsible for?
Correct Answer
C) Structural repairs and capital improvements
In a triple net lease, tenants pay property taxes, insurance, and maintenance costs, but structural repairs and major capital improvements typically remain the landlord's responsibility. The lease should clearly define which capital expenditures are tenant versus landlord obligations.
Why This Is the Correct Answer
Option C is correct because structural repairs and capital improvements typically remain the landlord's responsibility in triple net leases. While tenants assume responsibility for the three 'nets' (taxes, insurance, maintenance), major structural work and capital expenditures that enhance property value or extend building life are considered landlord obligations. This protects tenants from unexpected major expenses while ensuring landlords maintain their asset's structural integrity and long-term value.
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