1. What is Net Lease Base Rent?

Base Rent in a net lease represents the core rental payment after deducting operating expenses. It's the amount the tenant pays before additional charges like taxes, insurance, and maintenance.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Total Rent — The gross amount paid by tenant
• Expenses — Operating costs passed through to tenant

Explanation: This calculation helps determine the net amount that constitutes the base payment before additional lease obligations.

3. Importance of Base Rent Calculation

Details: Understanding base rent is crucial for both landlords and tenants to properly structure lease agreements and understand true occupancy costs.

4. Using the Calculator

Tips: Enter total rent amount in dollars and all expenses in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in expenses?
A: Typically includes property taxes, insurance, maintenance, utilities, and other operating costs passed to tenant.

Q2: How does this differ from gross lease?
A: In gross leases, landlord pays expenses; in net leases, tenant pays some or all expenses.

Q3: Are there different types of net leases?
A: Yes - single net (N), double net (NN), and triple net (NNN) leases pass different expense types to tenant.

Q4: Why calculate base rent separately?
A: Helps analyze the core rental value apart from variable operating costs.

Q5: Is base rent the same as net effective rent?
A: No - net effective rent typically accounts for concessions like free rent periods.