What type of lease usually provides the landlord with a base rent and the tenant pays for operating expenses?

Prepare for the Georgia Real Estate Pre-Licensing Test with comprehensive flashcards and multiple choice questions, complete with hints and explanations. Set yourself up for success!

A net lease is typically structured so that the landlord receives a base rent from the tenant while the tenant is responsible for additional operating expenses associated with the property. This setup often includes costs such as property taxes, insurance, and maintenance expenses. By shifting these responsibilities to the tenant, the landlord can maintain a more predictable income stream and reduce their own liability for these costs.

In contrast, other lease types distribute the financial responsibilities differently. A gross lease generally includes all operating expenses in the rent, meaning the landlord bears the costs. A percentage lease ties a portion of the rent to the tenant's sales, making it performance-based. A modified gross lease blends elements of both gross and net leases, often specifying that certain operating costs are covered by the landlord while others are the tenant's responsibility. Thus, the net lease structure specifically provides clarity on how expenses are allocated, making it a distinct option in the leasing landscape.

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