What type of lease results in the tenant paying fixed rent along with property expenses?

Study for the South Carolina Property Management License Exam. Access flashcards and multiple-choice questions with comprehensive hints and explanations. Prepare effectively for your certification!

A net lease is a type of lease where the tenant agrees to pay a fixed rent as well as a portion or all of the property expenses. This can include property taxes, insurance, and maintenance costs, depending on the specific terms laid out in the lease agreement. The structure of a net lease benefits landlords as it ensures they receive fixed income while transferring certain financial responsibilities to the tenant. This arrangement helps landlords reduce their financial risk and stabilize cash flow.

In contrast, a gross lease generally involves the landlord covering most property expenses, while the tenant pays only a fixed rent. Month-to-month leases and short-term leases don't specifically dictate the payment of additional property expenses alongside fixed rent; instead, they focus on the duration of the tenancy, allowing for greater flexibility in rental agreements without the added financial responsibilities typical in net leases. Therefore, the defining characteristic of a net lease is the combination of fixed rent with additional property expenses, making it the correct answer.

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