Ever question what a triple net lease is? Why are there 2 lease rates? Just how much a month do I pay? Read on ...

This post is planned to shed light on the world of commercial leasing for people who don't have extremely much experience in this area. It may even expose a number of points unknown to veterans also. It's a long post and I've attempted to break it up into the crucial areas.

To begin off, leases can take various types of what the proprietor has the ability to charge for rental quantities. The stance taken is constantly from the property manager's perspective and how the lease collected is applied. Where leases differ is how the Operating expense that a property manager sustains over the occupancy are treated. This is what makes it a Gross Lease or a Net Lease.

Before I get into what makes it a Gross Lease or a Net Lease, the very first thing that needs to be defined and understood are operating costs. Operating Costs are the non-capital, cash expenditures a user happens while running the residential or commercial property. This can be the landlord or the renter. The most common operating costs, by definition, are residential or commercial property taxes