Property Management

Which of the following is an example of a gross lease?

AThe tenant pays a base rent plus their share of property taxes and maintenance
BThe tenant pays a flat monthly rent and the landlord pays all operating expenses✓ Correct
CThe tenant pays rent that increases annually based on a cost-of-living index
DThe tenant pays percentage rent based on their gross sales

Explanation

In a gross lease, the tenant pays a single flat rent and the landlord is responsible for all operating expenses (taxes, insurance, maintenance). This is common in residential leases and some commercial leases.

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