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The label is only a starting point. The lease itself controls which party pays each expense, how costs are calculated, and what can change over time.
The tenant pays an agreed rent and the landlord generally pays most building operating expenses. Costs may still be reflected in the rent, and exclusions or expense adjustments can apply.
Tenant and landlord divide operating expenses in a negotiated way. For example, one party may cover taxes while the other pays utilities or increases over a base year.
In addition to base rent, the tenant pays some property expenses. “Single net” often adds property taxes; “double net” commonly adds taxes and insurance. Definitions vary — read the expense clauses, not the label.
The tenant typically pays base rent plus a share of property taxes, building insurance, and maintenance or operating expenses. Roof, structure, and capital costs require careful review, because big-ticket items sometimes hide in “operating expenses.”
Industry labels are not perfectly standardized. Confirm the exact expense clauses, exclusions, calculation methods, audit rights, and caps in the proposed lease before you compare one premises against another — a lower base rent with uncapped additional rent can cost more than a higher gross rent.