Property ManagementIntermediateDelaware Exam

What is a 'gross lease' in Delaware commercial real estate?

AA lease requiring tenant to pay all property operating expenses
BA lease where the landlord pays most expenses from the rent received, and the tenant pays only a fixed rentCorrect
CA lease with a gross rent adjustment clause tied to inflation
DA lease where rent includes utilities but not taxes

Why A lease where the landlord pays most expenses from the rent received, and the tenant pays only a fixed rent Is Correct

Answer B: A lease where the landlord pays most expenses from the rent received, and the tenant pays only a fixed rent

In a gross lease, the landlord bears most operating expenses (taxes, insurance, maintenance) out of the total rent received. The tenant pays a fixed all-inclusive rent, making budgeting predictable.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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