A lease structure where the tenant pays base rent plus property taxes and property insurance premiums. The landlord retains responsibility for structural maintenance and common area upkeep.
In a double net (NN) lease, the tenant is responsible for two categories of property expenses: real estate taxes and insurance premiums, in addition to base rent. The landlord covers structural maintenance, roof repairs, and common area expenses. NN leases are less common than triple net leases in modern commercial real estate but appear frequently in multi-tenant industrial and some retail properties. The tenant's exposure is limited to tax and insurance increases, making expense variability more predictable than in a triple net structure.
A landlord bills the tenant for building insurance that includes coverage for the landlord's own liability and loss of rental income, neither of which directly benefits the tenant. The insurance reconciliation shows a premium far above the cost of insuring the tenant's pro-rata share of the building.
Request a copy of the insurance policy and verify that the premiums billed to you cover only the property coverage types specified in your lease. Challenge any premiums for landlord-specific coverage like loss of rental income insurance.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
