📘 What Is Net Lease vs. Gross Lease? 

A Net Lease requires tenants to pay rent plus certain property expenses (taxes, insurance, maintenance). A Gross Lease bundles all costs into a flat rent amount paid by the tenant.

📌 When and Why It’s Used 

These lease types are common in commercial real estate. Net leases reduce landlord risk by passing costs to tenants, while gross leases offer simplicity for tenants.

🧮 How It’s Calculated or Applied

✅ Pros 

• Net leases lower landlord operating risk
• Gross leases simplify tenant budgeting
• Flexibility to negotiate expense responsibilities

⚠️ Cons 

• Net leases create variable costs for tenants
• Gross leases limit landlord control over expenses