What does a net-net-net (triple-net) lease require from the tenant?

A net-net-net, or triple-net lease, is a rental agreement where the tenant agrees to pay not only the base rent but also all operating expenses associated with the property. This encompasses maintenance, operating expenses, property taxes, and insurance premiums. The primary characteristic of this lease type is that it shifts the financial responsibilities typically borne by the landlord entirely onto the tenant.

In a triple-net lease, the expectation is that the tenant not only pays for the space they occupy but also contributes to the overall operating costs of the property. This arrangement provides predictability in costs for landlords since tenants handle the various expenses involved. This structure is common in commercial real estate and can be appealing to property owners looking for stable cash flow without the burden of managing property expenses.

The other choices do not capture the full nature of a net-net-net lease. A fixed rent payment alone does not account for the additional responsibilities of the tenant. Similarly, a lease that specifies payment of rent and utilities only, or just maintenance and repairs, would not fulfill the comprehensive obligations that a triple-net lease entails. Thus, the detailed requirement that encompasses all maintenance, operating expenses, taxes, and insurance premiums makes the choice that states these responsibilities the clearly correct answer.