Property Management

A Louisiana property manager is responsible for maintaining a commercial building. Which of the following is typically the manager's responsibility under a gross lease?

AThe tenant pays all operating expenses directly
BThe manager pays operating expenses from the gross rent collected✓ Correct
CThe tenant reimburses the manager for all expenses above a base year
DThe manager and tenant split all expenses 50/50

Explanation

Under a gross lease, the tenant pays a fixed rent and the landlord (or property manager) is responsible for paying all operating expenses — property taxes, insurance, maintenance, and utilities — from the rent collected.

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