Which type of lease is typically associated with residential or apartment leases?

The correct choice is a gross lease, which is commonly associated with residential or apartment leases. In a gross lease, the landlord or property owner covers all the operating expenses for the property, such as property taxes, insurance, and maintenance, while the tenant only pays a fixed amount for rent. This arrangement simplifies budgeting for tenants since they know exactly what their monthly payment will be without the need to account for fluctuating utility or maintenance costs.

This type of lease is favorable in residential settings as it provides predictability and an easier management experience for both tenants and landlords. Rarely do tenants in residential leases have to worry about additional charges for common property expenses, making the gross lease a preferred structure in apartment and single-family home rentals.

Conversely, other lease types listed are generally not as common in residential scenarios. Net leases, for example, typically shift more costs onto tenants, which is more prevalent in commercial real estate. Flexible leases often allow for adjustments over time, while index leases are based on specific indices and may involve more complex calculations, both of which can introduce variability that is less desirable for residential tenants.