Trademarks vs. Copyrights
- How to Set Up a Trust
- How to Create a Will
- What Is a Durable Power of Attorney
- Arizona LLC
- California LLC
- Florida LLC
- Michigan LLC
- New Jersey LLC
- New York LLC
- North Carolina LLC
- Ohio LLC
- Pennsylvania LLC
- Texas LLC
- Contact Us
- AI Doc Assist
- Business Name Generator
- Electronic Signature
- Free Trademark Search
- Legal Glossary
- Legal Templates
Home.
Business Glossary.
1. Gross Lease.
Gross Lease
Gross leases are a common kind of industrial lease in which the renter pays a set month-to-month charge for the usage of the residential or commercial property. With a gross lease, the tenant is just accountable for this single payment, while the property owner pays other costs associated with the structure, such as residential or commercial property taxes, insurance coverage, and maintenance costs. Landlords often consider these expenditures when choosing how much to charge their occupants under a gross lease.
A gross lease is a type of industrial lease where the property owner charges the occupant a single fee for usage of the residential or commercial property. Sometimes called a full-service lease, gross leases are popular with renters since they supply a foreseeable month-to-month payment that services can factor into their monthly budget.
With lots of other kinds of commercial leases, such as a net lease, the proprietor may charge the occupant base rent, plus a variable monthly cost for other costs like residential or commercial property taxes, insurance coverage expenses, and charges for developing maintenance. But with a gross lease, the property owner can factor these business expenses into the base rate they charge the renter, resulting in an easier, streamlined procedure.
Gross lease FAQs
What's the difference between gross lease and net lease?
Gross and net leases are similar in that they are both business leases with set regular monthly charges. However, with a net lease, the tenant pays specific additional expenses beyond the base rent fee.
There are a couple of different types of net leases: single net leases (in some cases abbreviated to N), double net leases (NN), and triple net leases (NNN).
With a single net lease agreement, renters typically pay base lease and residential or commercial property taxes for the rental residential or commercial property, while the proprietor presumes obligation for insurance charges and upkeep costs.
In a double net lease, the occupant pays base lease, residential or commercial property taxes, and insurance coverage expenses, while the property owner pays maintenance expenses. And with a triple net lease, the landlord pays for any structural or roofing repairs to the residential or commercial property, while the renter pays whatever else.
True to its name, a modified gross lease is a gross lease with minor adjustments. Tenants still pay a base monthly rental charge, but might also divide operating expenses with the proprietor. These running expenses might include things like residential or commercial property taxes and insurance, or upkeep costs.
What's the distinction between a gross lease and a percentage lease?
A percentage lease is a special kind of industrial lease agreement in which the occupant pays a base month-to-month rent fee, plus a percentage of any gross organization sales made on the landlord's residential or commercial property. This type of industrial lease arrangement is more common for retail businesses.
To determine just how much rent to charge occupants with a gross lease, landlords generally determine a base lease cost that's based upon the square video of the space to be leased, plus a percentage of their operating costs. This guarantees the property owner is able to charge a base lease cost that fairly shows the amount they invest to maintain the residential or commercial property.
Still have legal concerns?
Our network of attorneys can assist. Get endless 30-minute assessments on brand-new legal topics with our legal services strategy.
Discover more topics
A
- Affidavit.
- Alimony.
- Annual Report.
- Appreciation.
- Articles of Incorporation.
- Articles of Organization.
- Asset Turnover Ratio
B
- Beneficiary.
- Proof of sale.
- Bookkeeping.
- Box 12 on W-2.
- Breach of Contract.
- Business License.
- Business Owners Group (BOG)
C
- CapEx.
- Capital.
- Cease and Desist Letter.
- Cease and Desist Order.
- Civil Union.
- Codicil.
- Commis.
- Community Residential Or Commercial Property State.
- Contested Divorce.
- Contingent Beneficiary.
- Copyright Infringement.
- Corporate Resolution.
- Covenant Marriage.
- Current Ratio.
- Custodial Parent
D
- DBA.
- Deed of Trust.
- Defamation of Character.
- Depreciation.
- Disregarded Entity.
- Dissolution.
- Domestic Partnership
E
- EIN Number.
- EULA.
- Easement.
- Estate Sale.
- Ex Parte.
- Executor of a Will.
- Expense Ratio
F
- FEIN.
- FIFO Method.
- FUTA.
- Fiduciary Duty.
- Financial Statement.
- First-Class Postage.
- Fixed Asset Turnover.
- Fixed Cost.
- Food Runner.
- Foreign Qualification.
- Franchise Business.
- Franchise Tax
G
- GAAP.
- Gift Tax.
- Goodwill.
- Grantor.
- Grantor Trust.
- Gratuity.
- Gray Divorce.
- Gross Lease.
- Gross Profit.
- Gross Profit Margin.
- Gross Profit Ratio.
- Gross Sales and Net Sales.
- Ground Lease
H
- Hold Harmless Agreement.
- Holographic Will
I
- Incorporation.
- Indemnification.
- Independent Contractor.
- Informed Delivery.
- Intellectual Residential or commercial property.
- Irrevocable Trust
J
- Joint Custody.
- Joint Tax Payment.
- Joint Tenancy
K
- K- 1
L
- LLC.
- LLP.
- Lady Bird Deed.
- Landlord.
- Lawyer.
- Lease Agreement.
- Ledgers.
- Lessee.
- Lessor.
- Levy.
- Liability.
- Life Estate.
- Living Trust.
- Living Will
M
- MACRS.
- Mailing Address.
- Marginal Costs.
- Medical Power of Attorney.
- Meeting Minutes.
- Miranda Rights
N
- NDA.
- Net Asset Value (NAV).
- Net Assets.
- Earnings.
- Net Profit.
- Net Revenue.
- Net Sales.
- No-Fault Divorce.
- Noncompete
O
- Operating Agreement.
- Operating Capital.
- Operating Expenses.
- Overhead
P
- P.O. Box.
- PLLC.
- PTIN.
- Pass-Through Taxation.
- Patent Attorney.
- Patent Troll.
- Per Stirpes.
- Pooled Trust.
- Postcode.
- Pour-Over Will.
- Power of Attorney.
- Prenup.
- Primary Beneficiary.
- Principal.
- Priority Mail.
- Probate Attorney.
- Court of probate.
- Profit.
- Profit & Loss.
- Promissory Note.
- Residential or commercial property Deed.
- Public Benefit Corporation.
- Purchase Agreement.
- Purchase Orders (PO)
Q
- Quid Pro Quo.
- Quitclaim Deed
R
- Registered Agent.
- Residential Address.
- Return on Equity (ROE)
S
- S Corp.
- SG&A.
- Secretary of State.
- Service Mark.
- Single-Member LLC.
- Slogan.
- Sole Proprietorship.
- Statute of Limitations.
- Statutory Agent.
- Straight-Line Depreciation.
- Sublease.
- Successor Trustee.
- Surety Bond.
- Sweat Equity
T
- TOD.
- Tenancy in Common.
- Testamentary Trust.
- Total Asset Turnover.
- Brand name.
- Trade Secret.
- Trademark Search.
- Transactions.
- Triple Net Lease.
- Trustee
U
- Unilateral Contract.
- Unlawful Detainer.
- Utility Patent
V
- Vendors.
- Vicarious Liability.
- Virtual Mail.
- Virtual Office
W
- Warranty Deed.
- Wet Signature.
- What is gross revenue?
- Will
X
- X-Inefficiency.
- XD
Y
- Yellow Dog Contract.
- Yield
Z
- Zoning Laws
- irs.gov.
- usa.gov
Company
About.
Careers.
Contact.
Investors.
Press.
Partner with us.
Support
Order status.
Customer Care.
Speak to an attorney.
Join our lawyer network.
Security.
Discover more
Business & Legal help resources.
Business Name Generator.
Legal type templates.
What is an LLC?
How to Start an LLC?
How to Change Your Name.
What is a DBA?
Most Profitable Small Business Ideas.
What Is a Registered Agent?
How to Conduct a Trademark Search.
How to Find Out if a Service Name is Taken?
© LegalZoom.com, Inc. All rights reserved.
LegalZoom offers access to independent attorneys and self-service tools. LegalZoom is not a law practice and does not supply legal advice, other than where authorized through its subsidiary law firm LZ Legal Services, LLC. Use of our product or services is governed by our Terms of Use and Privacy Policy.
