What are tenants responsible for in a net lease?

In a net lease, tenants are typically responsible for some maintenance and operating expenses in addition to the base rent. This lease structure allows landlords to pass on various costs associated with property management to the tenants. Tenants may be required to pay for expenses such as property taxes, insurance, and certain maintenance costs, which can vary based on the specific terms outlined in the lease agreement.

This is distinct from other lease types, such as a gross lease, where the landlord covers most, if not all, operating expenses. The net lease model is commonly used in commercial real estate to give landlords a more predictable return on their investment while allowing tenants to have more control over the operations of the leased property.

The other choices do not encompass the breadth of financial responsibility tenants have under a net lease. Some expenses or only rent do not reflect the typical tenant obligations in this scenario.