A property management company in Ottawa enters into an agreement to manage a commercial office building. The owner requests a 'triple net' lease structure for all new tenants. What specific tenant responsibilities will the property manager need to outline and manage under this lease type?

Question: A property management company in Ottawa enters into an agreement to manage a commercial office building. The owner requests a 'triple net' lease structure for all new tenants. What specific tenant responsibilities will the property manager need to outline and manage under this lease type?

Answer options: ✅ Tenants will be responsible for their proportionate share of property taxes, building insurance, and common area maintenance (CAM) in addition to rent.

• Tenants will only pay a fixed gross rent, with the landlord covering all operating expenses.
• Tenants will be responsible only for their utilities, while the landlord covers all other costs.
• Tenants will pay a base rent and a percentage of their gross sales, with the landlord covering all expenses.

Correct answer: Tenants will be responsible for their proportionate share of property taxes, building insurance, and common area maintenance (CAM) in addition to rent.

Explanation: In a triple net (NNN) lease, the tenant is responsible for their proportionate share of the property's three main operating expenses: property taxes, building insurance, and common area maintenance (CAM), in addition to base rent.