As the owner of a commercial property, the lease you choose will be the essential document differentiating between the liabilities of both the landlord and the tenant. To help you understand which type is right for your particular property, the commercial leasing professionals at Galvin Realty Group, Inc., in Rochester, NY, explain the differences between the various types of contracts.

A Guide to the 3 Types of Commercial Leasing

1. Full-Service Lease

In a full-service lease, the landlord pays all the expenses associated with the property, which include taxes, insurance, and maintenance. All this is covered under the agreed price of rent, so as the property owner, it’s important to specify the details of every service included in the total sum.

2. Net Lease

In a net lease, the landlord charges a lower base rent, and the tenant must pay a portion of the expenses associated with operation and maintenance. There are various types of net leases, which determine the costs the tenant is responsible for. For example, in a single net lease, the tenant is only responsible for utilities and property taxes, while the landlord pays maintenance and insurance. But in a triple net lease, the tenant pays all the costs of the building, and the owner is only responsible for structural repairs.

3. Absolute Triple Net Lease

An absolute triple net lease is more rigid than the other types of net leases. In this agreement, the tenant is ultimately responsible for every cost and real estate risk associated with the property, even in the case of a catastrophe.

If you need professional assistance with leasing your property, turn to the experts at Galvin Realty Group, Inc., in Rochester, NY. The premier agency offers a comprehensive range of services, from property management to appraisals. Contact them today at (585) 546-1290 to set up a consultation or visit their website for more information about their commercial leasing services.