Single Net Lease

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.

BREAKING DOWN '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.

RELATED TERMS
  1. Gross Lease

    A type of commercial lease where the landlord pays for the building's ...
  2. Double Net Lease

    An agreement in which the tenant is responsible for both property ...
  3. Triple Net Lease

    A lease agreement that designates the lessee (the tenant) as ...
  4. Ground Lease

    An agreement in which a tenant is permitted to develop a piece ...
  5. Net Lease

    A provision that requires the tenant to pay a portion or all ...
  6. Modified Gross Lease

    A type of real estate rental agreement where the tenant pays ...
Related Articles
  1. Economics

    How Does a Modified Gross Lease Work?

    A modified gross lease is a rental agreement where, in addition to their rent, tenants pay a share of other costs associated with the property.
  2. Home & Auto

    Millennials Guide: How To Read a Lease

    Everything you need to know before you rent a home.
  3. Economics

    How Does an Operating Lease Work?

    Operating lease is a term used mostly in accounting to denote a lease that gives the lessee rights to use and operate an asset without ownership.
  4. Professionals

    Capital And Operating Leases

    CFA Level 1 - Capital And Operating Leases. Lists the requirements a lease must satisfy to be classified as an operating lease. Examines the incentives of operating over capital leases.
  5. Home & Auto

    Renters' Guide: Tenants, Landlords And Types Of Leases

    Landlord and TenantA landlord is an owner of real property who agrees to rent all or part of a property to another party, called the tenant, for some period of time. A lease establishes the relationship ...
  6. Economics

    What is a Capital Lease?

    A lease considered to have the economic characteristics of asset ownership.
  7. Professionals

    Determining The Value Of The Lease And The Lease Asset

    CFA Level 1 - Determining The Value Of The Lease And The Lease Asset. An in depth look at operating vs. capital leases and their impact on financial statements and ratios. Provides sample calculations ...
  8. Home & Auto

    The Complete Guide To Becoming A Landlord: Landlord-Tenant Relationship

    A lease establishes the relationship of landlord and tenant and is both a conveyance of a possessory estate in real property and a contract between the parties. Through the lease, the tenant ...
  9. Home & Auto

    Renters' Guide: The Rental Process

    Finding the ideal rental property can be time consuming. Knowing what to expect can help ensure a smooth process. View PropertiesWhile there are times when people must rent a property sight-unseen, ...
  10. Professionals

    Effects Of Capital Vs. Operating Leases

    CFA Level 1 - Effects Of Capital Vs. Operating Leases. Examines the impact on lease classification on financial statements. Compares the differences between operating and capital leases.
RELATED FAQS
  1. What are the differences between single, double and triple-net leases?

    Learn the ins and outs of net lease agreements, including the key differences between single net, double net and triple net ... Read Answer >>
  2. How does the value of the real estate impact the value of a triple net (NNN) lease?

    Understand how the value of the real estate involved in a triple-net lease impacts the value of the lease both positively ... Read Answer >>
  3. What are the three "nets" of an NNN lease?

    Learn what the three "nets" are in an NNN lease and how they affect the responsibilities of both landlord and tenant in a ... Read Answer >>
  4. What kinds of real estate transactions use triple net (NNN) leases?

    Learn how a net-net-net or triple net lease works and why it is popular in commercial real estate transactions. It is also ... Read Answer >>
  5. Why might a bond agreement limit the amount of assets that the firm can lease?

    Bond covenants can limit the amount of leases a company can have because leasing contracts are a form of debt. Taking on ... Read Answer >>
  6. How have low interest rates affected lease rates in the automotive sector?

    Find out how and why lower interest rates for leasing new automobiles have helped spur more consumers to lease cars instead ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center