Which lease type allows the landlord to require all operating expenses to be covered by the tenant?

A net lease is a type of lease agreement where the tenant agrees to pay not only the rent but also additional expenses related to the property. This may include operating expenses such as property taxes, insurance, and maintenance costs. Under this arrangement, the landlord receives a more predictable income stream while passing on most of the financial responsibilities to the tenant.

In contrast, a gross lease typically includes all operating expenses within the rent, meaning the landlord is responsible for covering those costs. A step-up lease involves predetermined increases in rent over time, while an index lease adjusts rent based on a specific index or economic measure, rather than directly placing operational costs onto the tenant. These distinctions highlight the nature of the net lease, where the burden of operating expenses clearly falls on the tenant, delineating it as the correct choice in this context.