Property Management

In a gross lease, who typically pays for operating expenses such as taxes, insurance, and maintenance?

AThe tenant pays all operating expenses
BThe landlord pays all operating expenses✓ Correct
CExpenses are split 50/50 between landlord and tenant
DOperating expenses vary by negotiation with no standard rule

Explanation

In a gross lease (also called a full-service lease), the landlord pays all operating expenses including property taxes, insurance, and maintenance. The tenant pays a single fixed rent amount.

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