What type of lease involves the landlord paying all expenses for the property while the tenant pays a fixed rental amount?

A lease in which the landlord covers all property expenses while the tenant pays a fixed rental amount is known as a gross lease. This type of arrangement is favorable for tenants because it provides certainty regarding their monthly rental payments, allowing them to budget without worrying about fluctuating costs such as property taxes, insurance, or maintenance expenses.

In a gross lease, the landlord assumes the financial responsibility for these variable costs, enabling tenants to focus solely on their business or occupancy without the added burden of additional expenses. It often applies to residential leases and various commercial leasing situations where simplicity and predictability in payment arrangements are prioritized.

Other types of leases, such as net leases, commonly require tenants to cover some or all of the additional expenses, which contrasts with the straightforward nature of a gross lease. This distinction makes a gross lease particularly appealing to tenants seeking stability in their financial obligations.