Property Management

Gross leases differ from net leases in that with a gross lease:

AThe tenant pays all operating expenses
BThe landlord pays most or all operating expenses (taxes, insurance, maintenance)✓ Correct
CThe tenant pays a percentage of sales
DThe rent adjusts with inflation

Explanation

In a gross (full-service) lease, the landlord pays operating expenses (taxes, insurance, maintenance, utilities). In net leases, the tenant pays some or all of these expenses in addition to base rent.

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