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Simple Triple Net Lease Agreement

A triple net lease agreement is a type of commercial lease that is commonly used in the real estate industry. It requires the tenant to pay for all operating expenses associated with the property in addition to the base rent. This can include property taxes, insurance, maintenance, and repairs. A simple triple net lease agreement is a straightforward agreement that outlines the terms of the lease and the responsibilities of both the tenant and the landlord.

The basic structure of a simple triple net lease agreement includes the following sections:

1. Premises – This section outlines the physical location of the property and the specific unit or space being leased.

2. Term – The term of the lease refers to the length of time that the tenant will occupy the property. It should also include provisions for renewal or extension of the lease.

3. Rent – The rent section of the lease should clearly state the monthly or annual base rent amount as well as any additional expenses that the tenant will be responsible for paying.

4. Operating Expenses – This section outlines the specific operating expenses that the tenant will be responsible for paying. It should include property taxes, insurance, maintenance, repairs, and any other expenses that the landlord deems necessary.

5. Use of Premises – This section outlines the specific permitted uses of the property. It may include restrictions on the types of businesses that can operate in the space or any other limitations that the landlord deems necessary.

6. Maintenance and Repairs – This section outlines the responsibilities of the tenant and the landlord with respect to maintenance and repairs. It should specify which party is responsible for different types of repairs and what procedures should be followed in the event that repairs are needed.

7. Default and Remedies – This section outlines the consequences of defaulting on the lease and the remedies that are available to the landlord in the event of default.

8. Assignment and Subletting – This section outlines the conditions under which the tenant can assign or sublet the property to another party.

A simple triple net lease agreement is typically less complicated than other types of commercial leases, making it an attractive option for landlords and tenants alike. However, it is important to carefully review the terms of the lease before signing to ensure that both parties are fully aware of their responsibilities and obligations. With a clear understanding of the lease agreement, both landlords and tenants can enjoy a successful and profitable commercial leasing relationship.