Single Net Lease

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DEFINITION of 'Single Net Lease'

A commercial real estate lease agreement in which the tenant is required to pay property taxes in addition to rent. A single net lease is a form of pass through lease in which taxes associated with the property become the responsibility of the tenant instead of the landlord. The landlord is responsible for the other operating expenses incurred of the property.

INVESTOPEDIA EXPLAINS 'Single Net Lease'

Single net leases are less common than double and triple-net leases, as the latter two pass more costs onto the tenant; specifically, insurance and maintenance costs. Single net leases are typically good investments in both good and bad economic times. This is because the terms of the lease are predetermined with a steady income coming in.

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