Massachusetts Real Estate License Practice Test

What does a gross lease typically require the tenant to pay?

1. Only utilities and repairs

2. Rent without additional expenses

3. Rent plus property taxes

4. Rent and insurance

The correct answer is: Rent without additional expenses

A gross lease typically requires the tenant to pay rent without additional expenses, making it the correct answer. In a gross lease arrangement, the landlord covers most of the operational costs associated with the property, such as utilities, repairs, property taxes, and insurance. This structure offers tenants simplicity and predictability in their rental expenses, as they do not need to worry about fluctuating costs related to property operation. The other choices involve costs that would typically be additional to the rent. Tenants are not responsible for utilities and repairs in a gross lease, nor are they responsible for property taxes or insurance, as these expenses are generally absorbed by the landlord. Thus, the essence of a gross lease model is for the tenant to pay a fixed rent amount, which is inclusive of these costs, providing a straightforward financial commitment.