What characteristic defines a gross lease?

A gross lease is defined by the landlord assuming responsibility for all operating expenses associated with the property. This means that the tenant pays a fixed rent amount, while the landlord takes care of costs such as property taxes, insurance, and maintenance expenses. This arrangement simplifies financial planning for tenants, as they do not have to worry about fluctuating operating costs that could impact their monthly budget.

In contrast, a situation where the tenant pays all expenses directly would characterize a net lease, where the tenant is responsible for these additional costs. Variable rental payments are indicative of a lease structure that allows for adjustments based on certain conditions, which is not a feature of gross leases. Shared ownership typically relates to co-ownership or partnership agreements and does not apply to the lease structure itself. Therefore, the clear definition of a gross lease is that the landlord covers all operating expenses, providing a clear and predictable leasing experience for tenants.