Florida Broker Practice Exam

In a gross lease, who is responsible for property expenses?

1. Tenant

2. Landlord

3. Property manager

4. Mortgage holder

The correct answer is: Landlord

In a gross lease, the landlord is responsible for paying all property expenses associated with the operation and maintenance of the property. This includes expenses such as property taxes, insurance, and maintenance costs. Tenants in a gross lease typically pay a fixed amount of rent, and they do not have to worry about fluctuating expenses related to the property. This arrangement provides tenants with financial predictability, as they can budget their rental costs without concerns about additional, variable fees. The other roles mentioned, such as the property manager and mortgage holder, do not directly bear the financial responsibility for property expenses in a gross lease. Though a property manager may oversee such expenses, they act on behalf of the landlord and are ultimately accountable to them. The mortgage holder is concerned with the financing of the property, rather than its operational expenses. Therefore, in a gross lease arrangement, it is clearly established that the landlord is the party responsible for managing and covering property-related expenses.