What is another term for a gross lease?

A gross lease is often referred to as an inclusive lease because it bundles together various operating expenses into the rent amount. In a gross lease, the landlord typically pays for most or all of the property’s operating expenses, such as taxes, insurance, and maintenance. This approach simplifies budgeting for tenants since they have a clear understanding of their total rental payment without the variability of additional costs.

This term emphasizes the inclusive nature of the lease, where the agreed-upon rent covers more than just the space itself. In contrast, other lease types like net leases shift some or all of these expenses to the tenant, thereby not being inclusive. Understanding the characteristics of a gross or inclusive lease helps tenants make informed decisions about their housing or office arrangements.