Double Net Lease

Double Net Lease
An 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. Double net leases are most commonly found in commercial real estate.

For commercial properties with multiple tenants, such as a shopping mall, taxes and insurance fees may be assigned to the individual tenants on a proportional basis. Even if property taxes and building insurance premiums are considered the responsibility of the tenant, owners of commercial property should have property taxes passed through themselves in order to ensure that they are aware of payment issues.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • double net lease — USA double net lease, Also known as net net lease or NN lease. A net lease where the tenant typically pays: • Base rent. • Real property taxes. • Insurance costs …   Law dictionary

  • net-net lease — USA double net lease, Also known as net net lease or NN lease. A net lease where the tenant typically pays: • Base rent. • Real property taxes. • Insurance costs …   Law dictionary

  • net lease — see lease Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. net lease …   Law dictionary

  • Net lease — Contents 1 Types of net leases 1.1 Single net lease 1.2 Double net lease …   Wikipedia

  • Net Lease — A provision that requires the tenant to pay a portion or all of the taxes, fees and maintenance costs for the property in addition to rent. Net lease requirements are most commonly used with commercial real estate. There are three primary types… …   Investment dictionary

  • Single Net Lease — A commercial real estate lease agreement in which the tenant is required to pay property taxes in addition to rent. A single net lease is a form of pass through lease in which taxes associated with the property become the responsibility of the… …   Investment dictionary

  • Gross Lease — A type of commercial lease where the landlord pays for the building s property taxes, insurance and maintenance. A gross lease can be modified in a number of ways to best meet the needs of a particular building s tenants (for example, a gross… …   Investment dictionary

  • NN lease — USA double net lease, Also known as net net lease or NN lease. A net lease where the tenant typically pays: • Base rent. • Real property taxes. • Insurance costs …   Law dictionary

  • Double Diamond Dude Ranch Dining Hall — U.S. National Register of Historic Places …   Wikipedia

  • Lease Rate — The amount of money paid over a specified time period for the rental of an asset, such as real property or an automobile. The lease rate that the lender earns from allowing someone else to use his property compensates him for not being able to… …   Investment dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”