A net-net (NN) lease, sometimes referred to as a double net lease, is a type of commercial lease in which renters and landlords share financial obligations. So, exactly, what is a double net lease? By giving the tenant more responsibilities than a single net lease but lesser than a triple net lease, this arrangement finds a compromise. It is commonly used in office buildings, retail spaces, and multi-tenant properties.
What Does Double Net Lease Mean?
Under a double net lease, the tenant is responsible for:
Rent
Property taxes
Property insurance (may include damage, liability, or title insurance)
Operating costs like utilities, building maintenance, and structural repairs are still the landlord's responsibility.
This model gives tenants greater transparency while lessening the strain on the landlord. Tenants, however, need to be ready to deal with growing insurance and tax rates.
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My landlord and I have agreed on this type of lease for our property, and let me tell you what is a double net lease. It comes under the broader category of net lease, in which the tenant has to pay both property taxes and insurance for the building. This differs from a single net lease, where the tenant is only supposed to pay the property taxes. In NN, the landlord is responsible for structural maintenance expenses.
What Does Double Net Lease Mean?
Double net lease is basically an agreement between the landlord and the tenant, where the latter agrees to pay two of the three primary property expenses, which include taxes, utilities, and insurance premiums. Based on my knowledge and experience, here’s how the lease works.
Net leases are like owning properties without having a legal title over it.
Landlords accept lower rent payments because of the additional costs that tenants have to incur.
These kinds of leases mostly work in commercial properties with multiple tenants, like shopping malls.
Also, taxes and insurance fees are usually assigned to individual tenants proportionally.
That’s all about what is double net lease agreement.
You can get it created online from a reputable service provider. We got our legally valid
lease agreement drafted online at NoBroker. Let me know if this helps or if you want any other clarifications.
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What is a Double Net Lease?
Mahashweta
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8 months
2025-03-21T10:24:15+00:00 2025-03-21T10:27:19+00:00Comment
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