In a net lease, the tenant is typically responsible for which of the following?

• A. Rent only.
• B. Some or all operating costs (such as taxes, insurance, maintenance).
• C. Only property taxes.
• D. All utilities.

Answer: (B)

Net leases shift ongoing property costs from the landlord to the tenant. The tenant pays base rent and also covers some or all of the operating costs that keep the building running—things like property taxes, property insurance, and maintenance (and often CAM charges). The exact mix depends on the specific net-lease type: one-net passes taxes, two-nets add insurance, and three-nets include maintenance. Utilities may be billed separately or included in operating costs in some arrangements, but the core idea is that these operating costs are the tenant’s responsibility. That’s why this option best matches how a net lease works.