PSI Virginia Real Estate Practice Exam

A Triple Net Lease excludes which expense categories?

1. Real property taxes, maintenance, and insurance

2. Utilities, cleaning, and maintenance

3. Property management fees, insurance, and cleaning

4. Taxes, rent, and maintenance fees

The correct answer is: Real property taxes, maintenance, and insurance

In a Triple Net Lease, the tenant agrees to pay all the operating expenses associated with the property, in addition to the rent. The expenses generally included under this type of lease cover real property taxes, maintenance costs, and insurance premiums. These three categories are considered the core elements of the "net" obligations of the tenant. When evaluating the other options, they either include expenses that are typically the responsibility of the landlord or mix operational costs with expenses that would not generally fall under the tenant's purview. For instance, expenses such as utilities or property management fees may vary depending on the lease terms and are not universally excluded from the standard expectations of a Triple Net Lease. Thus, the answer accurately reflects the nature of a Triple Net Lease by identifying that real property taxes, maintenance, and insurance are the essential responsibilities that tenants are required to cover, leading to the conclusion that these categories are not excluded.