What is the definition of a Gross Lease?

A Gross Lease is characterized by the tenant paying a fixed rental amount, while the landlord assumes responsibility for all operating expenses associated with the property. This means that the tenant's obligations are limited primarily to the rent, simplifying the financial responsibilities for them.

In a Gross Lease arrangement, the landlord typically covers costs such as property taxes, insurance, maintenance, and utilities. This structure is beneficial for tenants, as it provides more predictable budgeting, allowing them to focus solely on their rent without worrying about fluctuating operational costs.

Understanding this concept helps clarify the distinctions among various lease types, particularly in how expenses are allocated between landlords and tenants.