Property Management

A gross lease is one in which:

AThe tenant pays base rent plus all operating expenses
BThe landlord pays all operating expenses and the tenant pays a flat rent✓ Correct
CRent increases annually by a fixed percentage
DThe tenant's rent is based on a percentage of sales

Explanation

In a gross lease, the tenant pays a flat (gross) rent and the landlord covers operating expenses such as property taxes, insurance, and maintenance. This is common in residential rentals.

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