In a gross lease, who is responsible for paying property expenses?

In a gross lease, the landlord is responsible for paying most, if not all, property expenses associated with the leased space. This typically includes costs such as property taxes, insurance, and maintenance of the building. The tenant pays a fixed rental amount which does not fluctuate with these expenses, allowing for more predictable budgeting for the tenant.

This type of lease contrasts with other arrangements, such as net leases, where tenants might pay certain expenses in addition to their rent. The clear delineation of responsibilities in a gross lease is what makes it favorable for tenants who prefer not to deal with the unpredictability of rising property expenses. Understanding this allocation of financial responsibility is crucial for landlords, tenants, and property managers alike when structuring lease agreements.