What type of lease typically includes property taxes, insurance, and maintenance costs being paid by the tenant?

A net lease is a type of lease agreement where the tenant agrees to pay not only rent but also other expenses associated with the property, which usually include property taxes, insurance, and maintenance. This arrangement benefits landlords by ensuring that they receive a more predictable stream of income, which covers the ongoing costs associated with the property. The rent amount in a net lease is typically lower than in a gross lease, reflecting the additional financial responsibilities that the tenant assumes.

In contrast, a gross lease requires the landlord to cover all operating expenses, meaning the tenant pays only the base rent without any additional costs. A percentage lease usually pertains to commercial properties, allowing the landlord to charge a base rent plus a percentage of the tenant's sales, which varies from the fixed expenses involved in a net lease. Finally, a flat lease involves a fixed rental amount that remains constant over the lease term, without additional costs being shifted to the tenant in the way a net lease does. Therefore, in a net lease, the inclusion of property taxes, insurance, and maintenance costs by the tenant is what distinguishes it from the other lease types.