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What is the difference between a triple net lease and a gross lease?

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Today's topic: What is the difference between a triple net lease and a gross lease?

In a triple net lease, the tenant assumes responsibility for paying the base rent, as well as additional expenses associated with the property. These additional expenses typically include property taxes, insurance premiums, and maintenance costs. As a result, the base rent is typically lower than the base rent of a gross lease.

In a gross lease, the landlord assumes the responsibility for most, if not all, of the property expenses. The tenant pays a fixed rent amount, which typically includes a higher base rent, since it covers all or most of the operating costs of the property, such as property taxes, insurance, utilities, snow removal, landscaping, and maintenance. The landlord manages, and is responsible for, these expenses from the rental income received.

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