What type of lease does Charlie have with his tenants?

A gross lease is a type of lease agreement where the landlord covers most, if not all, operating expenses associated with the property, such as property taxes, insurance, and maintenance costs. In this arrangement, the tenant pays a single, fixed rent amount without the burden of additional operating expenses, making it straightforward for the tenant to budget their costs.

This type of lease is common in residential properties where stability and predictability in monthly payments are desirable for tenants. The landlord assumes greater responsibility for the property's upkeep and associated costs, while the tenant enjoys the simplicity of a clear and fixed rental obligation. Understanding this structure is essential in the context of real estate investment and property management.

In contrast, the other lease types either transfer some expenses to the tenant or involve adjusted rent based on sales performance, which do not align with the characteristics of a gross lease.