A lease agreement requiring the tenant to pay all property expenses, including real estate taxes, building insurance, and maintenance, in addition to rent, characterizes this specific type of residential tenancy. For example, a tenant leasing a single-family home under such terms would be responsible for not only monthly rent but also the homeowner’s insurance premiums, property tax payments, and costs associated with upkeep, such as landscaping, plumbing repairs, and roof replacement.
This form of leasing presents distinct advantages for property owners by offering a predictable income stream and transferring the burden of property management. It simplifies financial planning for landlords by shifting the responsibility for fluctuating expenses to the tenant. Historically, this lease structure has been more prevalent in commercial real estate; however, its application to the residential sector, although less common, provides a unique option for both landlords and tenants in specific circumstances. It can be particularly appealing in situations involving detached structures or unique properties where the tenant desires greater control over maintenance and customization.
