Gross lease

Often called a flat lease or straight lease, the gross lease is probably the most common type of lease. It is definitely the standard for residential leases, although it is also often used with smaller commercial properties.

The basic set-up of the gross lease is that the tenant pays a set amount each month. Depending on how the lease agreement is set, the tenant will often also be responsible for utilities consumed by the tenant, such as electricity, gas, heat, sewage, scavenger service and water. However, most landlords will or can only pass on those extra charges if the tenant is separately metered—which often require extra set-up expenses for the landlord.

The gross lease assumes that the property owner will be responsible for the property's operating, maintenance and repair expenses.

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