Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What is a key responsibility of tenants under a triple net lease?

1. To pay for all property taxes

2. To pay their share of operating expenses

3. To maintain the property interior

4. To negotiate lease terms with the landlord

The correct answer is: To pay their share of operating expenses

The key responsibility of tenants under a triple net lease includes paying their share of operating expenses. In a triple net lease, the tenant not only pays rent but also assumes responsibility for various expenses related to the property, which typically include property taxes, insurance, and maintenance costs. This structure allows the landlord to have a more predictable income stream, as the tenant is largely responsible for the upkeep and operational costs of the property. Tenants under such an agreement are often expected to contribute to shared expenses, which can include utilities, repairs, and general maintenance of common areas. This type of lease is commonly used in commercial real estate, where tenants preference to have control over the operating costs associated with their leased space. While paying property taxes and maintaining the interior are also responsibilities that may fall on tenants, these aspects are encompassed within the broader category of operational expenses in a triple net lease framework. Negotiating lease terms typically falls on the landlord-tenant dynamic, but it isn't a direct recurring responsibility of the tenant under this specific lease type.