What is a feature of a Net Lease?

A feature of a Net Lease is that the tenant pays a fixed rent along with certain costs associated with the property, including all property taxes. This arrangement allows landlords to pass on the financial responsibilities of operating the property directly to the tenant, which can include not only taxes but also insurance and maintenance costs, depending on the specific type of net lease (e.g., single net, double net, triple net).

In this context, tenants often appreciate the transparency of knowing what their total financial obligations will be, while landlords benefit by having a more predictable income stream and reduced operational burden. Understanding this structure is crucial for tenants and landlords alike in real estate transactions, as it impacts both cash flow and budgeting strategies.

Other options describe arrangements that do not align with the basic principles of a net lease. For instance, the second choice mentions a rent adjustment schedule, which is not standard in net leases where fixed rent is more common. The third choice focuses solely on utilities, which is too narrow and does not represent the broader fiscal responsibilities included in net leases. Lastly, the fourth option implies a fixed rent without increases for the lease duration, which is not a typical feature of net leases since they often allow for increases based on factors such as inflation or market conditions