Which lease type has the landlord pays building insurance and the tenant pays rent, taxes and other expenses?

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Multiple Choice

Which lease type has the landlord pays building insurance and the tenant pays rent, taxes and other expenses?

Explanation:
Understanding how operating costs are handled helps make sense of lease types. In a net lease, the tenant takes on some ongoing costs beyond the base rent. Here, the landlord covers the building’s insurance, while the tenant pays rent plus taxes and other operating expenses. This split is a hallmark of net leases, where the tenant shoulders taxes and other costs but not the insurance. It differs from a gross lease, where the landlord pays most or all operating costs, and from a triple net lease, where the tenant also takes on insurance (and often maintenance). So the arrangement described fits the net lease concept, with taxes and other expenses shifted to the tenant and insurance kept by the landlord.

Understanding how operating costs are handled helps make sense of lease types. In a net lease, the tenant takes on some ongoing costs beyond the base rent. Here, the landlord covers the building’s insurance, while the tenant pays rent plus taxes and other operating expenses. This split is a hallmark of net leases, where the tenant shoulders taxes and other costs but not the insurance. It differs from a gross lease, where the landlord pays most or all operating costs, and from a triple net lease, where the tenant also takes on insurance (and often maintenance). So the arrangement described fits the net lease concept, with taxes and other expenses shifted to the tenant and insurance kept by the landlord.

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