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Gross lease

National Real Estate Exam glossary · Leasing/Management

Definition

A lease in which the tenant pays a fixed rent and the landlord pays the property's operating expenses — taxes, insurance, and maintenance. It is typical of residential and many office leases.

Gross lease in plain English

A lease is just the rental agreement between a landlord and tenant. In a gross lease, the tenant pays one flat rent amount and the landlord takes care of the property's bills — the property taxes, insurance, and upkeep — out of that rent. It's the 'all-inclusive' deal: like a dorm fee where one price covers your room plus the water, heat, and repairs, so you never get surprise bills. This is the usual setup for apartments and many offices.

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