Florida Broker Practice Exam

Which lease type requires a tenant to pay a fixed rent plus additional property costs?

1. Gross lease

2. Net lease

3. Percentage lease

4. Flat lease

The correct answer is: Net lease

The net lease is the correct choice because it is specifically structured to have the tenant pay a base amount of rent along with additional property costs. This typically includes expenses such as property taxes, insurance, and maintenance costs, which can vary over time. In this type of lease, the landlord passes on specific costs to the tenant, making the tenant responsible for a portion of the property's operational expenses in addition to the fixed rent. In contrast, a gross lease includes a fixed rent where the landlord generally covers all operating expenses. This lease type provides simplicity for tenants, as they pay one fixed amount without worrying about fluctuating costs. A percentage lease is typically used in retail environments, where rent is based on a percentage of sales made by the tenant, rather than a fixed amount plus additional costs. Lastly, a flat lease usually specifies a single fixed rental rate for the duration of the lease without any additional cost structure variable. Thus, the characteristics of the net lease are what set it apart, making it the unique option that requires payment of both fixed rent and additional property expenses.