What type of lease involves a set rent amount while the landlord covers all expenses?

In a lease agreement where the tenant pays a predetermined set rent amount while the landlord is responsible for covering all expenses related to the property, this is known as a gross lease. In this situation, the tenant is not liable for costs such as property taxes, insurance, and maintenance; these expenses are entirely borne by the landlord.

This type of lease is advantageous for tenants because it provides predictability in budgeting, as the rent remains consistent regardless of the fluctuating costs for the landlord. Tenants can focus solely on their operational expenses without worrying about additional charges that could arise from property management or maintenance.

In contrast, a net lease requires the tenant to pay not only rent but also one or more of the property expenses like taxes or maintenance, which can complicate financial planning for the tenant. A percentage lease involves paying a base rent plus a percentage of income generated from the property, often used in retail settings where sales can vary. Lastly, a variable lease typically includes rent that can change at specified intervals, which contrasts with the fixed-rate nature of a gross lease.