Gross Lease

Property lease under which the lessor (landlord) agrees to pay all the expenses normally associated with ownership (insurance, taxes, utilities, repairs). An exception might be that the lessee (tenant) would be required to pay real estate taxes above a stipulated amount or to pay for certain special operating expenses (snow removal, grounds care in the case of a shopping center, or institutional advertising, for example). Gross leases are the most common type of lease contract and are typical arrangements for short-term tenancy. They normally contain no provision for periodic rent adjustments, nor are there preestablished renewal arrangements. See also Net Lease.

A lease of property whereby the landlord (lessor) is responsible for paying all property expenses, such as taxes, insurance, utilities, and repairs.
Example: In a certain apartment complex the Landlord pays for all utilities and taxes. The lease is a gross lease, since the landlord receives rent as a gross figure and must pay Operating Expenses.

A lease in which the owner receives the contractual rent out of which he or she must pay all or most of the operating expenses of the real estate.