What is the name of a lease where the landlord pays all operating expenses associated with the real estate?

Study for the IAAO Assessment Administration Specialist (AAS) exam. Engage with flashcards and multiple choice questions, each offering hints and detailed explanations. Prepare thoroughly for your certification!

The correct choice refers to a lease type where the landlord takes on all operating expenses associated with the property. In this arrangement, the landlord is responsible for expenses such as property taxes, insurance, and maintenance, providing tenants with a more predictable rental payment without additional costs. This contrasts with other lease types where tenants may be responsible for some or all of the operating expenses.

A gross lease simplifies the tenant's obligations since their rent covers all costs related to the property. This makes it attractive for tenants who prefer to avoid the uncertainties of fluctuating operating costs. For instance, in a triple net lease or net lease, the tenant would be responsible for these expenses, potentially leading to variable monthly costs. A full-service lease usually encompasses additional services and amenities, which again differs from the straightforward expense coverage found in a gross lease.

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