Which lease type has the tenant pay rent each month for the space occupied, and the landlord covers all property expenses for that space?

Which lease type has the tenant pay rent each month for the space occupied, and the landlord covers all property expenses for that space?

• A. Net lease
• B. Gross lease
• C. Triple net lease
• D. Modified gross lease

Answer: (B)

In a gross lease, the tenant pays a single monthly rent for the space, and the landlord covers all property expenses for that space—such as taxes, insurance, and maintenance. This arrangement keeps the tenant’s costs predictable, since operating costs are folded into the rent. It contrasts with net leases, where the tenant must also pay some or all operating costs separately; a triple net lease pushes most or all of those costs to the tenant; and a modified gross lease splits expenses between landlord and tenant. So the description fits a gross lease because the tenant’s payment is limited to rent while the landlord handles the property expenses.

In a gross lease, the tenant pays a single monthly rent for the space, and the landlord covers all property expenses for that space—such as taxes, insurance, and maintenance. This arrangement keeps the tenant’s costs predictable, since operating costs are folded into the rent. It contrasts with net leases, where the tenant must also pay some or all operating costs separately; a triple net lease pushes most or all of those costs to the tenant; and a modified gross lease splits expenses between landlord and tenant. So the description fits a gross lease because the tenant’s payment is limited to rent while the landlord handles the property expenses.