Double net lease,
Definition of Double net lease:
A type of lease whereby in addition to paying rent, the tenant will also include payments for other items such as taxes and insurance for using the property.
A double net lease (also known as a 'net-net' or 'NN' lease) is a lease agreement in which the tenant is responsible for both property taxes and premiums for insuring the building. Unlike a single net lease, which only requires the tenant to pay property taxes, a double net lease passes more expenses along in the form of insurance payments.
The landlord is still held responsible for structural maintenance expenses. Each month, the landlord receives the base rent plus the additional payments.
How to use Double net lease in a sentence?
- Because the tenant is responsible for two expense categories, the total rent payment is often reduced.
- Also known as a net-net (NN) lease, these are most commonly found among commercial tenants.
- A double net lease is a rental agreement whereby the tenant agrees to cover the costs of two of the three primary property expenses: taxes, utilities, or insurance premiums.
Meaning of Double net lease & Double net lease Definition