Triple net lease is a version of a CRE lease agreement.
In this particular arrangement between tenant and landlord, the tenant (lessee) agrees to pay all operating and property expenses on top of the rental. Such expenses will include assessment rates, insurance, repairs and maintenance, utilities, pest control, security etc.
In this “low admin’ arrangement, the landlord or owner only has to worry about “one cheque a month”. All related property management overhead is handled by the tenant.
The downside risk is that the tenant does not honour her responsibilities. As a result, there is risk the property is either poorly maintained or breaches payment obligations to service providers and/or authorities. Meaning, at the end of the lease, the property owner may have problems to deal with