Burk Baker National Practice Test 2026 - Free Practice Questions and Study Guide

Understanding who pays operating costs in different lease types helps distinguish common residential arrangements. In a gross lease, the landlord covers most or all operating expenses—property taxes, insurance, maintenance, and often utilities—while the tenant pays a single rent amount. This makes it simple and predictable for renters, which is why it’s the typical setup for apartments. Other types shift costs to the tenant: a net lease requires the tenant to pay some or all operating costs; a percentage lease bases rent on sales and is common in retail; a graduated or stepped lease includes scheduled rent increases over time. So the description that aligns with the apartment scenario and the landlord handling most expenses points to the gross lease.