Property Management

A Minnesota commercial tenant has a 'gross lease.' Under this type of lease, the tenant pays:

AAll operating expenses including taxes and insurance
BA fixed rent that includes the landlord's operating expenses✓ Correct
CBase rent plus a percentage of their sales revenue
DBase rent plus utilities only

Explanation

In a gross lease, the tenant pays a fixed rent amount and the landlord pays all operating expenses (taxes, insurance, maintenance). The landlord builds these costs into the rent amount. This contrasts with net leases where tenants pay some or all operating expenses. Gross leases are simpler for tenants since they have predictable fixed payments.

Related Minnesota Property Management Questions

Practice More Minnesota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Minnesota Quiz →