True or False: The rental income for a landlord under a gross lease typically decreases over time due to rising operating expenses.

Under a gross lease, the landlord typically covers all operating expenses associated with the property, such as maintenance, property taxes, and insurance, among others. This means that the rental income is set at a certain amount for the duration of the lease.

As operating expenses may rise over time due to inflation or increased service costs, the landlord's actual income in real terms can decrease if those costs outpace any increase in the gross rent collected. This dynamic can lead to a situation where, despite receiving the same nominal amount of rent, the landlord effectively earns less as more money is allocated to cover mounting expenses.

In contrast, if the lease were structured differently—such as with a net lease, where tenants might bear some or all of these costs—operating expenses would not directly affect the landlord’s rental income in the same way. The concept that the rental income for landlords under gross leases could decrease in real terms aligns with the understanding of financial dynamics in property management and tenant agreements.