Traditional Definitions of Rent:
A. Net Lease: Tenant Pays Real Estate Taxes
B. Net-Net Lease: Tenant Pays Real Estate Taxes and Insurance Premiums
C. Triple Net Lease: Tenant Pays Real Estate Taxes Insurance Premiums and Repairs
D. Modified Gross: What ever the lease says it is.
No matter which terms are stated in the lease, it’s the details that make the difference. Important questions to ask: Are the total pass-through costs such as Taxes and Insurance paid by the tenant? Does the tenant only pay an increase over a Base Amount?
Commercial leases are often confusing and unclear. Often, the most confusing and complex provisions are about pass-through costs. Having your attorney review and negotiate your lease is a prudent investment to avoid costly surprises down the line.