Which scenario best matches the definition of a gross lease?

Which scenario best matches the definition of a gross lease?

• A. The tenant pays a percentage of rent based on sales
• B. The tenant pays fixed rent with the landlord covering most property expenses
• C. The tenant pays all property taxes directly
• D. The tenant pays rent inclusive of utilities only

Answer: (B)

A gross lease is a type of rental agreement where the tenant pays a fixed rent and the landlord takes on the responsibility for most property expenses, such as maintenance, property taxes, and insurance. This arrangement provides the tenant with predictable monthly costs, as they do not have to worry about variable expenses associated with the property. In the correct scenario, the defining feature is the landlord covering the majority of the property's expenses while the tenant pays a fixed amount for rent. This contrasts with other rental structures where expenses might be passed on to the tenant, making the fixed structure of a gross lease advantageous for those seeking stability in their rental payments.

A gross lease is a type of rental agreement where the tenant pays a fixed rent and the landlord takes on the responsibility for most property expenses, such as maintenance, property taxes, and insurance. This arrangement provides the tenant with predictable monthly costs, as they do not have to worry about variable expenses associated with the property.

In the correct scenario, the defining feature is the landlord covering the majority of the property's expenses while the tenant pays a fixed amount for rent. This contrasts with other rental structures where expenses might be passed on to the tenant, making the fixed structure of a gross lease advantageous for those seeking stability in their rental payments.