Which type of lease requires the tenant to pay all expenses of the property being...

A triple net lease (NNN lease) (Option A) requires the tenant to cover all property expenses in addition to base rent.

Why Option A is Correct?

NNN leases shift the responsibility of property costs (taxes, insurance, and maintenance) from the landlord to the tenant.

These leases are common in commercial real estate because they reduce risk for property owners while providing stable rental income.

IFMA’s Real Estate & Property Management Core Competency highlights the importance of understanding lease structures for effective property management.

Why Other Options Are Incorrect?

Option B (Gross lease): The landlord pays for all expenses, and the tenant only pays a fixed rent.

Option C (Full-service lease): Similar to a gross lease, all costs are included in the rent.