A triple net lease gets its name because it requires a tenant to pay the net amount of three types of costs - real estate taxes on the leased asset, net building insurance, and net maintenance fees. The structure of the lease designates the lessee as solely responsible for all costs related to the asset as well as the rental fees associated with it.
If a property owner leases out a building to a business using a triple net lease, the tenant is responsible for paying the building's property taxes, building insurance and the cost of any maintenance or repairs the building might require during the term of the lease. Because the tenant is covering these costs (which would otherwise be the responsibility of the property owner), the rent charged in the triple net lease is usually lower than rent charged in a standard lease agreement.
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