What does a Triple Net Lease require the tenant to pay for?

A Triple Net Lease is a commercial real estate lease agreement where the tenant is responsible for the payment of three key expenses in addition to the base rent: real estate taxes, maintenance costs, and insurance premiums. This type of lease structure allows landlords to have a more predictable income stream because the tenant takes on these additional financial responsibilities.

When a tenant agrees to a Triple Net Lease, they are essentially taking on the expenses that would typically be handled by the landlord in a standard lease arrangement. This may include paying property taxes, covering the costs of maintaining the property (such as repairs and upkeep), and obtaining insurance for the property.

The reasoning behind this type of lease is to shift the financial risks to the tenant, which can be beneficial for landlords, especially those looking for a passive investment. The tenant, on the other hand, may benefit from having more control over the property management aspects but must be prepared for these additional financial commitments.

Thus, the requirement for the tenant to pay for real estate taxes, maintenance, and insurance makes this option the correct answer regarding what a Triple Net Lease entails.