What Is Triple Net Lease?
A triple net lease (NNN) requires the tenant to pay property taxes, insurance, and maintenance in addition to base rent — shifting nearly all operating costs from landlord to tenant.
Why it matters
NNN leases give landlords a highly predictable income stream since operating expense increases pass through to the tenant, which is why single-tenant NNN properties are popular with income-focused investors.
Triple Net (NNN) Lease vs. Gross Lease
Tenant pays base rent plus taxes, insurance, and maintenance — the landlord's income is highly predictable.
Tenant pays one flat rent; the landlord covers taxes, insurance, and maintenance out of that rent.
A modified gross lease splits these costs by negotiated agreement, landing somewhere between the two.
Full comparison: Gross Lease vs Net (NNN) Lease, with a worked example →
Related Terms
More Commercial & Appraisal Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
Understand a property's costs and risks before you make an offer
Use the free calculator for your own numbers, or analyze a specific home before you commit.
Or analyze a specific property: Essential Property Analysis, $19 · Property Decision Analysis, $49 · Professional Property Analysis, $99. You choose the depth before you pay.