GROSS LEASE Meaning and
Definition
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A gross lease is a type of lease agreement commonly used in commercial real estate, where the tenant pays a fixed rental amount that includes all the costs associated with the property, such as property taxes, building insurance, and maintenance expenses. This type of lease arrangement is also known as a full-service lease or an all-inclusive lease.
Under a gross lease, the landlord assumes the responsibility for managing and maintaining the property, operating expenses, and all other costs related to its ownership. The tenant's only obligation is to pay the fixed rental amount specified in the lease agreement. The landlord typically estimates the operating expenses for the property and includes them as part of the rental payment, providing the tenant with predictable and consistent monthly expenses throughout the lease term.
This type of lease arrangement is often preferred by tenants as it allows for easier budgeting and eliminates the need to negotiate and pay separate expenses for property taxes, insurance, and maintenance. It also minimizes the risk of unexpected or fluctuating costs for the tenant.
While a gross lease provides convenience for tenants, it may also result in higher rental rates compared to other types of leases, such as net leases. Nonetheless, the simplicity and predictability of a gross lease make it a popular choice for many commercial tenants seeking to occupy a property without the burden of additional expenses or management responsibilities.
Common Misspellings for GROSS LEASE
- fross lease
- vross lease
- bross lease
- hross lease
- yross lease
- tross lease
- geoss lease
- gdoss lease
- gfoss lease
- gtoss lease
- g5oss lease
- g4oss lease
- griss lease
- grkss lease
- grlss lease
- grpss lease
- gr0ss lease
- gr9ss lease
- groas lease
- grozs lease
Etymology of GROSS LEASE
The word "gross lease" is derived from Middle English and Old French.
The term "gross" originated from the Old French word "gros" meaning "thick" or "large". In English, "gross" initially referred to something in large quantities, which eventually evolved to encompass anything that is total, overall, or comprehensive.
The word "lease" comes from the Middle English word "lese" or "les", which in turn is derived from the Old English word "lesan", meaning "to gather" or "to harvest". It originally referred to a contract or agreement allowing the usage of land or property for a specified period in exchange for payment.
Similar spelling words for GROSS LEASE
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