In which type of lease does the tenant pay some or all property expenses in addition to a fixed rental payment?

In a net lease, the tenant is responsible for paying some or all of the property expenses in addition to a fixed rental amount. This is a key characteristic that distinguishes net leases from other types of leases. Typically, the tenant covers costs such as property taxes, insurance, and maintenance, which are in addition to the base rent. This arrangement allows landlords to maintain lower rental rates while ensuring coverage of property operating costs through the tenant's contributions.

This contrasts with a gross lease, where the landlord typically absorbs these expenses, resulting in a fixed rent that encompasses all property costs. A percentage lease involves payments based on a percentage of a tenant's sales, which does not directly relate to how property expenses are handled. Similarly, an equity lease is less common and typically involves an arrangement where the tenant shares in the property value's appreciation, rather than focusing on ongoing property expenses. Understanding these distinctions is crucial for effective commercial property management and lease negotiations.