Ever wonder what a triple net lease is? Why exist two lease rates? Just how much a month do I pay? Keep reading ...

This post is planned to clarify the world of commercial leasing for people who don't have extremely much experience in this area. It might even expose a number of points unknown to veterans as well. It's a long post and I've tried to break it up into the essential areas.

To begin, leases can take numerous kinds of what the property owner has the ability to charge for rental amounts. The stance taken is constantly from the proprietor's viewpoint and how the rent collected is applied. Where rents vary is how the Operating Costs that a property owner incurs over the tenancy are dealt with. This is what makes it a Gross Lease or a Net Lease.

Before I get into what makes it a Gross Lease or a Net Lease, the first thing that requires to be defined and understood are running expenses. Operating Costs are the non-capital, money costs a user takes place while operating the residential or commercial property. This can be the landlord or the tenant. The most typical operating expense, by meaning, are residential or commercial property taxes