In which lease does the landlord receive the stipulated rent and pays the operating expenses?

Prepare for the New York City Assessor Exam. Study with multiple choice questions and in-depth explanations on each topic. Ace your exam with confidence!

In a gross lease, the landlord is responsible for paying the operating expenses of the property, while the tenant pays a fixed rent. This arrangement means that tenants do not have to worry about variable costs such as property taxes, insurance, or maintenance, as these are covered by the landlord. This type of lease provides tenants with predictability in their monthly expenses, making it an attractive option for many businesses.

In contrast, a net lease typically requires tenants to pay not just rent, but also some or all of the operating expenses, which can include taxes, insurance, and maintenance. A percentage lease is often used in retail, where the rent includes a base rate plus a percentage of the tenant's sales, and a graduated lease includes rent increases at specified intervals over the term of the lease.

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