leasing
gross lease
A gross lease is a lease in which the tenant pays a fixed rent and the landlord pays most or all of the property's operating expenses, such as property taxes, insurance, and maintenance. Tenants may still pay their own utilities depending on the terms. Gross leases are common for residential apartments and some office space. They contrast with net leases, in which the tenant pays some or all of the operating expenses in addition to base rent.
- Exam tip
- Remember: gross lease = landlord pays expenses; net lease = tenant pays expenses; triple net = tenant pays taxes, insurance, and maintenance.
- Example
- An apartment tenant pays $1,500 a month, and the landlord pays the property taxes, building insurance, and repairs under a gross lease.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23