What is the primary distinction of a Net-Net (Double Net) Lease?

A Net-Net (Double Net) Lease is characterized by the tenant's responsibility to cover base rent along with two specific types of expenses associated with the property. Typically, these costs include property taxes and insurance, while the landlord remains responsible for maintenance or structural repairs. This arrangement contrasts with other lease types, where the tenant may bear all operational costs or where the landlord retains responsibility for most expenses.

This structure allows landlords to mitigate some operational risks while providing tenants with a level of control over some aspects of the property's cost. It is essential for both parties to clearly define which expenses fall under the tenant's responsibilities within the lease agreement to avoid disputes. By understanding this distinctive responsibility division, tenants and landlords alike can better manage their financial obligations and expectations in a leasing arrangement.