Property Management
A gross lease is one in which:
AThe tenant pays a base rent plus all operating expenses
BThe landlord pays all operating expenses and the tenant pays only a fixed rent✓ Correct
CThe tenant pays rent based on a percentage of gross sales
DBoth parties split all expenses equally
Explanation
Under a gross lease, the tenant pays a fixed rent and the landlord is responsible for paying all property operating expenses (taxes, insurance, maintenance, utilities). This is contrasted with a net lease, where the tenant pays some or all operating expenses in addition to base rent.
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