What type of lease involves a tenant paying a fixed amount of rent plus some additional costs?

A net lease is a type of lease agreement where the tenant pays a fixed base rent plus additional costs associated with the property. These additional costs typically include property taxes, insurance, and maintenance expenses, which can vary based on the property’s operating costs. This arrangement allows landlords to reduce their financial burden, as tenants contribute directly to some of the expenses associated with property ownership.

In contrast, a gross lease format usually requires the landlord to cover all operating expenses, meaning tenants are not responsible for extra costs beyond their fixed rent. A variable lease is generally one that allows for adjustments in rent based on market conditions or inflation, rather than having a consistent structure of fixed rent plus additional costs. Meanwhile, a graduated lease involves predetermined increases in rent over time but does not inherently include additional costs. Thus, the net lease distinctly fits the criteria of a tenant paying a fixed amount of rent plus some additional costs, highlighting its unique role in commercial leasing agreements.