Property Management
In Rhode Island, what is a 'gross lease' versus a 'modified gross lease'?
AThey are the same type of lease
BA gross lease has the landlord paying all expenses; a modified gross lease has the tenant and landlord splitting or sharing certain expenses✓ Correct
CA modified gross lease requires a higher security deposit
DA gross lease is for commercial properties only
Explanation
In a gross lease, the landlord pays all operating expenses. In a modified gross lease, some expenses (such as electricity or janitorial) are allocated to the tenant while others remain with the landlord, creating a hybrid arrangement negotiated between the parties.
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