Which lease type requires the tenant to pay not only the rent but also property taxes?

The type of lease that requires the tenant to pay not only the rent but also property taxes is known as a double-net lease. In a double-net lease, the tenant is responsible for paying the base rent as well as two additional operating expenses: property taxes and insurance. This means that while the landlord remains responsible for the structural maintenance of the property, the tenant takes on these extra financial responsibilities.

Understanding the different lease types is essential in property management. A single-net lease requires the tenant to pay rent plus property taxes only, while a triple-net lease extends the tenant's responsibilities to include rent, property taxes, insurance, and maintenance costs. Conversely, a gross lease puts the onus of all operating expenses on the landlord, with the tenant paying only the rent. The double-net lease strikes a balance, making it especially common in commercial real estate, where certain fixed costs are transferred to the tenant while keeping other responsibilities with the landlord.