What characterizes a gross lease?

A gross lease is characterized by the landlord bearing all expenses related to the property. In this arrangement, the tenant pays a flat rental fee, which covers not just the rent but also various operating costs such as property taxes, insurance, and maintenance. This type of lease simplifies the financial management for tenants, as they do not need to worry about fluctuating expenses associated with the property's operation.

In contrast, when tenants pay for all expenses related to the property, it reflects a net lease structure, where costs like utilities, maintenance, and taxes are additional expenses on top of the base rent. An unoccupied property does not pertain to the lease type itself but rather to its status or condition. A security deposit, while common in many leasing agreements, is not a defining characteristic of a gross lease; it's standard across various lease types to protect the landlord against potential damages. Thus, the fundamental distinction of a gross lease is that the landlord assumes responsibility for ongoing property expenses, ensuring tenants have a clearer understanding of their financial commitment.