Property Management

A North Dakota commercial tenant's lease contains a 'gross lease' provision. This means:

AThe tenant pays base rent plus all operating expenses directly
BThe tenant pays a fixed rent and the landlord pays most operating expenses✓ Correct
CThe rent increases based on gross sales
DThe tenant's rent is calculated based on gross income of the property

Explanation

In a gross lease, the tenant pays a fixed rent amount and the landlord is responsible for paying most operating expenses including taxes, insurance, and maintenance. This is simpler for tenants but typically results in higher base rent to cover landlord expenses.

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