In which type of lease is the tenant responsible for base rent excluding operating expenses?

In a net lease, the tenant agrees to pay a base rent amount along with additional expenses related to the property. These additional expenses typically include operating costs such as property taxes, insurance, and maintenance. This arrangement differs from a gross lease, where the landlord covers these operating expenses and the tenant pays only a flat rate for rent.

By structuring the lease this way, a net lease allows landlords to pass on the costs associated with property management to the tenants, making it clearer for both parties what is included in the rent. As a result, this type of lease provides predictable base rent while allowing the landlord to ensure they are not burdened by fluctuating operational costs. This feature makes net leases appealing for tenants looking for a clear understanding of their financial obligations beyond just the rent amount.