Gross Lease

A gross lease is interchangeably referred to as a straight lease or, more commonly, a full-service lease. This type of lease is most commonly used for rental transactions between landlords and residential tenants; however, some instances exist where a gross lease is used for rental agreements between landlords and tenants of single or multi-occupancy commercial office space. This lease obligates the tenant to pay a flat rental rate while the property owner is responsible for all of the costs and expenses related to the operation and maintenance of the property. Utility costs may be paid by the tenant or the landlord, depending on the terms of the lease or any negotiated agreement between the tenant and the landlord. Whether residential or commercial, the landlord is typically responsible for covering property-related expenses such as taxes, insurance, operating, maintenance, repairs and improvements. In some cases, the landlord may also be responsible for the costs of utilities, appliances, and water and sewage.