In a net lease:
A)The lessee pays for insurance, but does not maintain the asset
B)The lessee pays to maintain, insure, and meet property tax obligations on the asset
C)The lessor pays for insurance, maintenance, and property taxes
D)The lessor and lessee split the maintenance, insurance, and property taxes 50:50

Question

Quizplus · Accepted Answer

In a net lease, the lessee is responsible for maintaining, insuring, and meeting property tax obligations on the asset they are leasing. This is why it is also sometimes referred to as a "triple net lease." The lessor only maintains ownership of the property and receives rent payments from the lessee. Option A is incorrect because the lessee is responsible for maintaining the asset, not just paying for insurance. Option C is incorrect because the lessor is not responsible for any of the costs associated with the property. Option D is incorrect because the lessee is responsible for all costs, not just 50%.

In a Net Lease