In the real estate investment industry, a gross lease is a type of rental agreement in which the tenant pays a fixed amount of rent, while the landlord is responsible for all the property-related costs. These costs typically include property taxes, insurance, maintenance, utilities, and repairs.
This arrangement can be advantageous for the tenant because it provides them with predictable, stable costs. For the landlord, though it puts more responsibilities on them, it can be a strategic way to attract and retain tenants, as it simplifies their rental costs.
The opposite of a gross lease is a “net lease,” where the tenant is responsible for some or all of the additional costs on top of their base rent.