A double net lease is a type of lease agreement where the tenant (lessee) pays the landlord (lessor) not only the base rent but also specific property-related expenses. In this arrangement, the tenant is responsible for paying property taxes and insurance costs associated with the property. The landlord, on the other hand, takes care of all other operating expenses related to the property.
Double net leases are commonly used in commercial real estate transactions. They are particularly relevant in the context of leasing retail spaces, office buildings, and industrial properties. In legal practice, understanding this lease type is essential for both landlords and tenants to ensure they are aware of their responsibilities and rights. Users can manage their lease agreements effectively by utilizing templates and forms available through platforms like US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A retail store enters into a double net lease for a shopping center. The store pays $3,000 per month in rent, along with property taxes and insurance, while the landlord manages maintenance costs.
Example 2: A company leases an office space under a double net lease, agreeing to pay $5,000 in rent plus the associated property taxes and insurance fees. The landlord handles utilities and maintenance. (hypothetical example)
| State | Key Differences |
|---|---|
| California | Commonly includes additional clauses for maintenance responsibilities. |
| Texas | May require specific disclosures regarding property conditions. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Net Lease | A lease where the tenant pays some or all of the property expenses. | Double net lease specifically includes taxes and insurance. |
| Triple Net Lease | A lease where the tenant pays rent plus all property expenses. | Triple net lease includes maintenance costs, unlike double net lease. |
If you are entering into a double net lease, it's important to clearly understand your financial obligations. Review the lease terms carefully and consider using a legal template from US Legal Forms to ensure all necessary details are included. If you have any uncertainties, it may be wise to consult with a legal professional to clarify your responsibilities and rights under the lease.
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A double net lease is a lease agreement where the tenant pays base rent, property taxes, and insurance.