Which type of lease requires the tenant to pay a fixed rental amount while the owner covers property expenses?

A gross lease is a rental agreement where the tenant pays a fixed rental amount, and the property owner or landlord is responsible for covering the property's operating expenses, such as maintenance, taxes, and insurance. This structure provides tenants with predictable costs since they are not liable for variable expenses, making budgeting easier.

In contrast, a net lease would require tenants to pay for certain expenses associated with the property, such as utilities, property taxes, and insurance, in addition to their base rent. A percentage lease typically involves a base rent plus additional payments based on a percentage of the tenant's sales, often used in retail settings. The term "standard lease" is vague and does not specifically correlate with the definitions of lease types commonly used in commercial property management.

The gross lease's straightforward nature simplifies financial planning for tenants, which often leads to greater appeal for businesses that prefer a clear and stable rental obligation.