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Net Lease vs Gross Lease

A lot of times you see a listing and it says $14 net. What does that mean as opposed to $14 gross?

In a gross lease, the tenant pays a fixed amount of rent to the landlord, who then takes care of all the property-related expenses such as property taxes, insurance, maintenance, and utilities. In other words, the tenant pays a "gross" amount of rent that includes all expenses.

On the other hand, in a net lease the tenant is responsible for paying a portion or all of the property-related expenses in addition to the base rent. There are different types of net leases, such as single net lease, double net lease, and triple net lease, which determine the specific expenses the tenant is responsible for paying. For example, in a triple net lease, the tenant is responsible for paying property taxes, insurance, and maintenance costs in addition to the base rent.

In simple terms, a gross lease means the tenant pays one fixed amount of rent, and the landlord takes care of all expenses. In contrast, a net lease means the tenant pays a lower base rent but is responsible for additional expenses associated with the property.

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