Which type of lease allows the tenant to pay fixed rent along with property costs such as taxes and insurance?

A net lease is a type of lease agreement where the tenant is responsible for paying not only the fixed rent but also additional property costs, which typically include taxes, insurance, and maintenance expenses. This arrangement effectively lowers the landlord's liability for variable costs associated with the property, allowing the landlord to focus on receiving consistent rental income.

In a net lease, the landlord provides a base rent and passes on these additional costs to the tenant, providing transparency about expenses related to the property. This structure is beneficial for landlords because it typically results in a more stable revenue stream, as tenants take on the financial responsibility for operating costs. It is common in commercial real estate, where tenants may have more control over their occupancy costs.

Understanding the nuances of different types of leases is crucial for anyone involved in property management, as it impacts the financial obligations and responsibilities of both landlords and tenants.