Net / NNN = tenant pays taxes, insurance, maintenance
Before you read
Test yourself first: 5 questions
Question 1 of 5
To end a month-to-month tenancy, the required notice is typically:
Answer: A. Periodic tenancies usually require notice equal to one rental period (commonly 30 days for month-to-month), subject to state law.
Question 2 of 5
A long-term lease of land only, on which the tenant may construct improvements, is a:
Answer: A. In a ground lease the tenant leases the land (often 50+ years) and owns/operates the improvements they build.
Question 3 of 5
When a tenant subleases to another and sits between the owner and the subtenant, the middle interest is a:
Answer: A. In a sublease the original tenant becomes a 'sandwich' lessee — still owing the landlord while collecting from the subtenant.
Question 4 of 5
A valid lease generally identifies the parties, the premises, the term, and:
Answer: A. Essentials of a lease: competent parties, a described premises, a term, and rent; long-term leases must also be in writing.
Question 5 of 5
A percentage lease is most commonly used for which type of property?
Answer: B. Percentage leases are typical in retail, where rent is a base amount plus a percentage of the tenant's gross sales above a stated breakpoint.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Gross = landlord pays expenses; rent is flat
- Net / NNN = tenant pays taxes, insurance, maintenance
- Percentage = rent + % of sales (retail)
- Ground = long land lease; tenant builds
- Estate for years = fixed dates (auto-ends)
- Periodic = renews (month-to-month) until notice
- At will = either ends anytime; sufferance = holdover
Leases & Tenancies: FAQs
Is Leases & Tenancies on the real estate exam?
Yes. Leasing & Property Management is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
