How is a 'gross lease' defined in real estate leasing?

A gross lease is defined as an arrangement in which the landlord covers all property-related expenses, such as property taxes, insurance, and maintenance, while the tenant is responsible for paying a single, fixed rent amount. This type of lease simplifies budgeting for tenants since they know exactly what their monthly costs will be, without worrying about fluctuating expenses that may arise from property upkeep or operational costs.

In contrast, the other options introduce concepts that do not align with the definition of a gross lease. For example, the first choice incorrectly describes a lease where the tenant is responsible for all property expenses, which would actually be classified as a net lease. The third option refers to a lease with variable rent, which is not characteristic of a gross lease since it lacks the fixed payment nature. The fourth option brings in property renovation costs, which are generally unrelated to the fundamental structure of a gross lease, focusing instead on ongoing operating expenses covered by the landlord. Thus, the definition provided in the correct answer encapsulates the core principles of a gross lease arrangement effectively.