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

In a net lease, the tenant typically takes on the responsibility for certain additional costs beyond just the rent, which is a fundamental aspect of this leasing structure. This commonly includes expenses such as insurance, property taxes, and sometimes property maintenance. Therefore, it is correct to state that under a net lease, the tenant is usually responsible for insurance and property taxes, which aligns with the characteristics of this type of lease agreement.

In the context of real estate practices, tenants in a net lease are often expected to manage and finance these extra expenses directly, meaning they play a critical role in the overall maintenance of the property’s financial health. This arrangement benefits property owners by providing them with more predictable income streams, as they are not directly responsible for these operating costs, freeing them up to focus on asset management.

Other responsibilities like property maintenance or property management may still fall under the purview of either party depending on the specifics of the lease agreement, but they are not the defining characteristics of a net lease. Real estate commissions are typically considered a cost of doing business and are not something that tenants would be responsible for under a leasing structure. Thus, identifying that tenants handle insurance and property taxes highlights the essential financial obligations intrinsic to a net lease arrangement.