What type of lease allows the landlord to recover additional expenses from the tenant?

Prepare for the VanEd National Real Estate Exam. Study with interactive quizzes and detailed explanations. Get ready to ace your test with confidence!

A net lease is characterized by allowing the landlord to recover additional expenses from the tenant beyond the base rent. This type of lease typically requires the tenant to pay not only the rent but also a portion of certain operating expenses, which may include property taxes, insurance, and maintenance costs.

In contrast, a gross lease generally includes most expenses in the rent, meaning the landlord covers those costs, and the tenant pays a single amount without additional charges. A percentage lease is commonly used in retail settings where the tenant pays a base rent plus a percentage of sales, which is also distinct from the landlord recovering operational costs. A month-to-month lease offers flexibility in rental terms but does not inherently provide for the recovery of additional expenses. Thus, the net lease distinctly facilitates recovery of additional expenses, making it the correct answer to the question.

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