Particularly small business owners may face the choice of whether or not to enter into a net lease.  What is a net lease and why should you care?

To varying degrees net leases shifts costs and risks that are traditionally borne by the landlord to the tenant.  Under what is termed a “single net lease” the responsibility for paying property taxes is shifted from the landlord to the tenant.  A “double net lease” shifts the responsibility for paying both property taxes and property-related insurance premiums to the tenant.  Finally, a “triple net lease” requires the tenant to pay property taxes, property-related insurance premiums, as well as maintenance and upkeep costs associated with the property.

Why should you care?  The boilerplate language in your net lease can shift important costs and risks to you, the small business owner, that you should consider, understand, and analyze before you sign the lease.  In Part II of this series we’ll discuss how you may wish to consider changing your perspective on net leases before you sign on the dotted line.

[Legal advice not only involves an understanding of the law, but the application of the law to a particular set of circumstances or facts.  Blog posts are imperfect tools to address the subtlety and exceptions of the law that may apply in your situation.  As a result, the information in this blog post does not represent legal advice.  If you are in a situation where you need or desire legal advice, we would be happy to help.  Call Paul at 608-358-9413 or complete the Contact Us form to set-up your no-charge initial consultation.]