A lease with a simple exchange of rent for occupancy, under which the tenant pays none of the costs of ownership, is known as a(n):

A gross lease, also known as a fixed or flat lease, is an agreement where the tenant pays a fixed, periodic rent, and the landlord (lessor) pays all the property's operating expenses. These expenses typically include property taxes, insurance, and maintenance (often abbreviated as TIM). This arrangement creates a simple exchange where the tenant's single payment covers the right of occupancy without any additional, variable pass-through costs related to property ownership. This lease type is most common in residential and multi-tenant office building rentals.

A. A graduated lease is incorrect because its primary feature is rent that changes (usually increases) at pre-determined intervals, not a fixed rent.

C. A net lease is the opposite of the described scenario; it requires the tenant to pay a base rent plus some or all of the property's operating expenses.

D. A percentage lease is incorrect as the rent is tied to the tenant's business performance, calculated as a percentage of gross sales, not a simple fixed payment.

1. North Carolina Real Estate Commission. (2023). North Carolina Real Estate Manual. Chapter 11, Landlord and Tenant, Section: "Types of Leases," pp. 11-10.

This official NCREC publication defines a gross lease as one where "the tenant pays a fixed rent and the landlord pays all taxes, assessments, insurance, maintenance, and utilities connected with the property...This is the lease most often used for residential and commercial office space."

2. Ling, D. C., & Archer, W. R. (2021). Real Estate Principles: A Value Approach (7th ed.). McGraw-Hill Education. Chapter 16, Lease Contracts, Section: "Lease Clauses and Provisions," p. 438.

This university-level textbook states, "With a gross lease, the owner pays all of the property's operating expenses... In this case, the owner must fully estimate and recover all operating expenses... through the rental payments." This confirms the landlord's responsibility for ownership costs.