What is a net contract?

Net Contracts are agreements, typically used in business or real estate, where the tenant or client is responsible for paying certain expenses in addition to rent or service fees. These expenses can include property taxes, insurance, and maintenance costs. Net contracts are common in commercial leasing, with variations such as single net, double net, or triple net leases depending on which expenses the tenant must cover. Understanding the terms of a net contract is important to accurately assess the total cost of the agreement.