What does the tenant pay in a single-net lease?

In a single-net lease, the tenant is responsible for paying the operating expenses of the property. This typically includes costs associated with the maintenance and management of the common areas, utilities, and other day-to-day expenses incurred by the property owner that keep the property functioning.

In a single-net lease arrangement, the landlord retains responsibility for property taxes and insurance. This differentiates a single-net lease from other types of net leases, such as double-net or triple-net leases, where the tenant would be responsible for additional costs, including property taxes and insurance.

Thus, since the tenant only assumes the burden of operating expenses in a single-net lease, the correct understanding revolves around this specific financial responsibility.