Which type of lease requires the tenant to pay not only rent but also costs incurred in maintaining the property?

Study for the 75 Hour Broker Pre Licensing Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A net lease is a type of lease agreement in which the tenant is responsible for not only paying rent but also covering additional expenses associated with the property. These expenses typically include property taxes, insurance, and maintenance costs. This arrangement allows landlords to receive a steady income stream from the base rent while shifting certain operational costs to the tenant.

In contrast, a gross lease generally requires the landlord to cover all operating expenses while the tenant only pays a flat rental fee. A percentage lease involves the tenant paying a base rent plus a percentage of sales, commonly used in retail settings. A fixed-term lease simply refers to a lease that spans a predetermined time period, without specifying the financial arrangements related to maintenance or additional costs.

Thus, a net lease is specifically characterized by the tenant's obligation to handle these extra costs, making it the correct choice for this question.

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