What does a net lease require the tenant to pay?

A net lease requires the tenant to pay not only the agreed-upon rent but also certain operating expenses associated with the property. This typically includes costs such as property taxes, insurance, and maintenance expenses, making it different from other types of lease agreements where the landlord covers those costs.

By requiring the tenant to take on these additional financial responsibilities, a net lease structure reduces the financial burden on the landlord and allows for more predictable income flows. It's essential in commercial real estate, where understanding the total cost of occupancy is crucial for tenants considering their budget and cash flow management.

This structure helps clarify the financial obligations of both parties, aligning their interests in maintaining the property and ensuring its operational efficiency. Therefore, the comprehensive nature of what a net lease entails is what makes the correct answer pertinent to understanding leasing agreements in real estate.