True or False: Under a gross lease, the income a landlord receives is variable based on operating expenses.

Prepare for the RECA Commercial Exam. Study with flashcards and multiple choice questions, with hints and explanations. Be exam-ready!

In a gross lease, the rent is fixed and typically includes all operating expenses such as maintenance, property taxes, and insurance. This means that the income the landlord receives does not fluctuate based on the operating expenses. Instead, the landlord assumes the responsibility for these costs and must manage them within the set rent amount. Therefore, the landlord's income remains stable, as it is not variable based on operational expenses, which aligns with the characteristics of a gross lease arrangement.

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