Property Management
A lease in which the landlord pays all property expenses (taxes, insurance, maintenance) and the tenant pays a flat rental amount.
In a gross lease (also called a full-service lease), the tenant pays a fixed monthly rent and the landlord is responsible for all property operating expenses including property taxes, insurance, maintenance, and utilities. This is the standard residential lease structure. The landlord's risk is higher because expenses may increase while rent remains fixed during the lease term. Some gross leases include an expense stop, a cap above which the tenant must share in increased costs.
Exam Tip
Gross lease = tenant pays one flat amount, landlord covers expenses. Net lease = tenant pays rent PLUS some or all expenses. Triple net (NNN) = tenant pays everything.
Study Guide
Property Management
Key concepts and exam tips →
Practice
NY Real Estate Property Management
Free sample questions →
Preparing for the NY Real Estate Exam?
Unlocked covers Gross Lease and every other concept on the NY Real Estate Salesperson Exam — with study modules, practice questions, spaced-repetition flashcards, and Carl, your AI study buddy.
click for a haiku!