In a double-net lease (NN), which costs does the tenant typically pay?

• A. Base rent plus property taxes and insurance; landlord pays maintenance.
• B. Base rent; landlord covers taxes, insurance, and maintenance.
• C. Base rent plus maintenance; landlord pays taxes and insurance.
• D. Base rent only; landlord pays all other costs.

Answer: (A)

In a double-net lease, the tenant pays base rent plus two operating costs: property taxes and property insurance. The landlord keeps responsibility for maintenance. This arrangement shifts specific ongoing costs away from the landlord while keeping maintenance with the landlord, which is why the correct description is base rent plus taxes and insurance for the tenant, with maintenance paid by the landlord. If maintenance were also paid by the tenant, that would be a triple-net lease; if the landlord paid taxes, insurance, and maintenance, it would be a gross lease.