Double Net Lease

Dictionary Says

Definition of 'Double Net Lease'

An agreement in which the tenant is responsible for both property taxes and premiums for insuring the building. Unlike a single net lease, which only requires the tenant to pay property taxes, a double net lease passes more expenses along in the form of insurance payments. The landlord is still held responsible for structural maintenance expenses. Each month, the landlord receives the base rent plus the additional payments. Double net leases are most commonly found in commercial real estate.
Investopedia Says

Investopedia explains 'Double Net Lease'

For commercial properties with multiple tenants, such as a shopping mall, taxes and insurance fees may be assigned to the individual tenants on a proportional basis. Even if property taxes and building insurance premiums are considered the responsibility of the tenant, owners of commercial property should have property taxes passed through themselves in order to ensure that they are aware of payment issues.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Commercial Real Estate

    Property that is ...
  2. Triple Net Lease

    A lease ...
  3. Property Tax

    A tax assessed ...
  4. Gross Lease

    A type of ...
  5. Lease

    A legal document ...
  6. Land Lease Option

    An option within ...
  7. True Lease

    A specific type ...
  8. Capitalized Lease Method

    An accounting ...
  9. Walk-Away Lease

    A common type of ...
  10. Capital Loss

    The loss ...

Articles Of Interest

  1. Find Fortune In Commercial Real Estate

    Investing in big buildings means big money - and bigger risks.
  2. Defeasance Reduces Commercial Real Estate Fees

    Try this alternative to short-term variable-rate financing when using leverage to buy property.
  3. 7 Steps To A Hot Commercial Real Estate Deal

    For savvy real estate investors, times of lower prices reveal investment opportunity.
  4. The Truth About Real Estate Prices

    Historical housing price data suggests ongoing increases in housing prices, but these numbers don't tell the whole truth.
  5. Should You Buy Property On Leased Land?

    Find out what to consider before investing in a leased-land property.
  6. Whom Should Corporations Please?

    Companies balance the interests of owners, customers and employees. Find out who comes out on top.
  7. 5 Common Misconceptions About ETFs

    The rise in these funds' popularity has contributed to misinformation about what they are and how they work. Learn more here.
  8. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  9. Introduction To Asset-Backed And Mortgage-Backed Securities

    In this article, we will go through the structure, along with some examples of ABS and valuation.
  10. Profit From Mortgage Debt With MBS

    Mortgage-backed securities can offer monthly income, a fixed interest rate and even government backing.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center