What type of lease is characterized by a fixed rent with all expenses covered by the landlord?

A lease that is characterized by a fixed rent with all expenses covered by the landlord is known as a gross lease. In a gross lease, the landlord is responsible for paying all operating expenses related to the property, including taxes, insurance, and maintenance costs. This arrangement provides the tenant with predictable monthly rent payments without the uncertainty of fluctuating expenses. The tenant benefits because they are not directly responsible for additional costs beyond their set rent amount, allowing for more straightforward budgeting.

In contrast, a net lease generally requires tenants to pay some or all of the property expenses in addition to their base rent. A percentage lease typically involves rent based on a percentage of the tenant's sales, which can lead to variable expenses, while a month-to-month lease is a rental agreement that doesn't lock the tenant into a long-term commitment but may still involve variable costs like utilities. Thus, the defining feature of the gross lease aligns precisely with the description of a fixed rent where all expenses are covered by the landlord.