Certified Pennsylvania Evaluator Practice Exam

What is generally considered a fixed aspect of a Gross Lease?

1. The amount of property taxes paid by the tenant.

2. The fixed base rent agreed upon by the tenant and landlord.

3. The variable expenses that can change yearly.

4. The maximum amount of expenses covered by the landlord.

The correct answer is: The fixed base rent agreed upon by the tenant and landlord.

In a Gross Lease, one of the defining characteristics is that the landlord is responsible for all operating expenses associated with the property, such as property taxes, maintenance, and utilities, while the tenant pays a fixed base rent. This arrangement ensures that the tenant knows exactly how much they will be paying each month, allowing for easier budgeting without the worry of fluctuating expenses. Therefore, the fixed base rent agreed upon by the tenant and landlord is a fundamental aspect of a Gross Lease. The other options relate to varying aspects of the lease agreement, such as variable expenses and maximum expense coverage, but do not reflect the consistent and predictable nature of the base rent that makes up a core component of a Gross Lease.