In a triple net lease the tenant pays all operating costs and expenses associated with the property it leases for the duration of the lease.  In other words, the tenant pays taxes, insurance premiums, internal and external maintenance, security, cleaning, etc. The lessor pays management fees.  Fair wear and tear is expected and is included in a “Fair Wear and Tear” clause in the lease.  The lessor/landlord receives a net rent without the hassle of active property management. 

Triple net leases tend to be long term, approximately 10 to 25 years, and usually contain cost-of-living increases in the rent.

Triple net properties sometimes feature credit-worthy tenants such as government entities and national and regional companies.  These companies choose to lease rather than buy to enable corporate funds to be used for business expansion rather than fixed in a mortgage.  The public perception often is that the company owns the building since their name and logo may appear on the outside.