DICTIONARY

Full Gross Lease

With a full gross lease, tenants pay one monthly price for rent, including all of their utilities, taxes, and insurance.

Why It Matters

With a full gross lease, landlords assume all of the risk of fluctuating costs, such as utilities. Landlords choose a monthly rent price at the beginning of each year to cover the cost of utilities. Oftentimes, landlords need to overestimate to make up for potential irregularities, so tenants end up paying more than they would if they paid their utilities separately. With a triple net lease, on the other hand, landlords pass all of these risks to the tenants, and tenants pay for what they consume each month.

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