Property Management

A gross lease for a commercial unit requires the tenant to pay $3,000 per month. The landlord pays all operating expenses, which total $900 per month. What is the landlord's effective net income from this lease per month?

A$3,000
B$2,100✓ Correct
C$900
D$3,900

Explanation

Under a gross lease, the tenant pays a flat rent and the landlord covers operating expenses. Net income = Gross rent – Operating expenses = $3,000 – $900 = $2,100 per month. This is the landlord's effective net income after expenses are paid.

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