In real estate, what does a "net lease" refer to?

A net lease refers to a situation in real estate where the tenant not only pays rent for the property but also contributes to certain property-related expenses. This structure can include a variety of costs associated with property operations such as property taxes, insurance, and maintenance. The specific terms can vary, and in some cases, the tenant may be responsible for one or more of these additional costs, making it different from a gross lease where the landlord typically covers all expenses.

The nature of net leases can vary further into types like single net leases, double net leases, or triple net leases, depending on how many of those expenses the tenant takes on. This arrangement is beneficial for landlords as it provides a more predictable income stream while also involving tenants in the property management side of things.

The other options do not encapsulate the full definition of a net lease. For example, a lease that only requires the tenant to pay for utilities or one that covers maintenance and repairs does not include the broader spectrum of additional expenses commonly shared in a net lease framework. A lease with no additional costs to the tenant aligns more with a gross lease arrangement instead.