What type of lease typically includes the lessee’s payment of property insurance, taxes, and maintenance?

A net lease is characterized by the lessee assuming responsibility for additional costs beyond just the rent, which often includes property insurance, taxes, and maintenance expenses. In this arrangement, the landlord typically covers the mortgage payment and any financing costs, while the lessee bears the operational burdens. This structure is beneficial for landlords as it reduces their financial exposure and can result in higher net income from their property.

In contrast, a gross lease usually incorporates most expenses into the rent, meaning that the landlord is responsible for property taxes, insurance, and maintenance. Operating leases often represent a simpler agreement where the lessee pays for the use of an asset but might not take on significant additional expenses. A full payout lease, commonly in finance, refers more to the ultimate cost of leasing an asset over its full term rather than the division of responsibilities for property expenses. Thus, the net lease distinctly aligns with the description provided in the question regarding expense responsibilities.