Which type of lease is characterized by a tenant paying a fixed monthly charge?

A gross lease is characterized by the tenant paying a fixed monthly charge that typically includes all rent and additional costs associated with the property, such as maintenance, utilities, and property taxes. This structure simplifies budgeting for tenants, as they do not need to separately account for these expenses.

In a gross lease, the landlord absorbs the variable costs associated with the property, making it an attractive option for tenants who prefer predictability in their monthly expenses. This contrasts with other lease types, such as net leases, where the tenant may be responsible for certain costs beyond the base rent, leading to variability in monthly payments. The gross lease arrangement aligns well with residential rental agreements, where tenants appreciate having one comprehensive payment without the additional burdens of fluctuating costs.