In a double net lease, who pays for roof repairs?

In a true Double Net (NN) lease, the landlord is responsible for all maintenance and structural repairs, including the roof. The tenant pays only property taxes and insurance. A common abuse is the landlord structuring a large deductible on the property insurance policy and then passing the deductible cost through as an "insurance expense" when the roof is repaired via a claim.

How do I audit my property tax pass-through under a NN lease?

Request the actual municipal property tax bill from the landlord and verify: (1) the total assessment matches what is being billed, (2) no landlord late-payment penalties are included, (3) special assessments for capital improvements (new sidewalks, road improvements) are excluded if your lease specifies standard ad valorem taxes only, and (4) your pro-rata share fraction matches your lease.

Can a landlord charge CAM expenses under a double net lease?

No. In a true Double Net lease, the landlord retains responsibility for CAM. If your landlord is billing you for landscaping, parking lot maintenance, janitorial, or management fees, that is a lease violation. Review your lease's expense definition carefully, and if it is silent on those items, the standard NN structure places that responsibility on the landlord.

In a double net lease, who pays for roof repairs?

In a true Double Net (NN) lease, the landlord is responsible for all maintenance and structural repairs, including the roof. The tenant pays only property taxes and insurance. A common abuse is the landlord structuring a large deductible on the property insurance policy and then passing the deductible cost through as an "insurance expense" when the roof is repaired via a claim.

How do I audit my property tax pass-through under a NN lease?

Request the actual municipal property tax bill from the landlord and verify: (1) the total assessment matches what is being billed, (2) no landlord late-payment penalties are included, (3) special assessments for capital improvements (new sidewalks, road improvements) are excluded if your lease specifies standard ad valorem taxes only, and (4) your pro-rata share fraction matches your lease.

Can a landlord charge CAM expenses under a double net lease?

No. In a true Double Net lease, the landlord retains responsibility for CAM. If your landlord is billing you for landscaping, parking lot maintenance, janitorial, or management fees, that is a lease violation. Review your lease's expense definition carefully, and if it is silent on those items, the standard NN structure places that responsibility on the landlord.

Double Net Lease (NN) CAM Audit Guide

Tenants in Double Net Lease (NN) structures face specific overcharge risks tied to how expenses are allocated and billed. CamAudit runs 12 forensic detection rules on your reconciliation statement to identify every recoverable dollar.

Formal Definition

A commercial lease structure where the tenant pays base rent plus their pro-rata share of property taxes and building insurance premiums. Unlike a Triple Net lease, the landlord retains financial responsibility for common area maintenance, structural repairs, and ongoing property upkeep.

Expense Pass-Throughs

Tenant pays: base rent, property taxes (pro-rata), and building insurance premiums (pro-rata). Landlord pays: CAM expenses, structural maintenance, roof, parking lot, landscaping, janitorial of common areas, and all ongoing operating costs beyond taxes and insurance.

CAM Calculation & Billing

No traditional CAM reconciliation applies. Tenant receives annual property tax bills and insurance premium invoices, and pays their pro-rata share directly or through the landlord. Billed on the tenant's fractional share of the total municipal tax assessment and the building's insurance policy premium.

Most Common Overcharge

Landlords slip structural repair costs into inflated insurance deductibles, particularly roof repairs. A landlord files an insurance claim for a roof leak, accepts a payout, but then passes the high deductible through to tenants as an "insurance expense." Tenants effectively subsidize capital repairs through a non-CAM channel.

Common Industries

→Industrial / older retail
→Pharmacy chains (standalone)
→Single-tenant retail
→Warehouse / distribution

Audit Focus

Audit property tax invoices against the actual municipal assessment. Verify that the insurance invoices reflect the actual policy premium with no markup or hidden fees. Challenge deductibles that are unusually high or applied to claims that cover structural elements (roof, HVAC) the landlord should bear under a NN structure.

Red Flags to Watch

▶Insurance deductibles spiking year-over-year without a change in carrier or policy
▶Insurance invoice line items including "deductible recovery" or "claims adjustment fee"
▶Property tax bills that include special municipal assessments beyond standard ad valorem taxes
▶Late payment penalties from the taxing authority passed through to the tenant

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Related Resources

ResourcesCAM Audit by Tenant Type ToolsFree CAM Audit Tools GlossaryCAM Glossary ToolsPro-Rata Share Calculator

Frequently asked questions

This 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.