Question

1.A benefit of a gross lease is that it is easy for the tenant to forecast expenses related to the use of the property.

True

False

QUESTION 2

A gross lease is always preferable to a triple net lease.

True

False

QUESTION 3

A tenant should carefully negotiate with the landlord the terms of a net lease before signing the lease.

True

False

QUESTION 4

A tenant who signs a triple net lease will pay three times for the space than a tenant who signs a single net lease for the same space.

True

False

QUESTION 5

A triple net lease shifts more cost uncertainty to a tenant than a gross lease.

True

False

6.Commercial properties with stable tenants should have lower cap rates than if these same buildings had very risk tenants. A risky tenant is one who is likely to default on lease payments.

True

False

Answer 1

1.

Gross lease is type of lease of property in which owner of property pays all the expenses like tax, insurance and maintanance. the Lessor has to pay oy fixed lease amount at each period. One of the benefit of a gross lease is that it is easy for the tenant to forecast expenses related to the use of the property.

Statement is true.

2.

Gross lease is type of lease of property in which owner of property pays all the expenses like tax, insurance and maintanance. the Lessor has to pay oy fixed lease amount at each period. So, A gross lease is always preferable to a triple net lease.

Statement is true.

3.

In net lease the lessor has to pay periodic lease payment along with maintanance expenses, taxes. So, A tenant should carefully negotiate with the landlord the terms of a net lease before signing the lease.

Statement is true.

4.

A tenant who signs a triple net lease will pay  periodic lease payment along with maintanance expenses, taxes and insurance on property. its not like he need to pay triple times of lease amount.

Statement is false.