Which type of lease is characterized by a flat fee with no utilities included?

The correct answer is characterized by a flat fee where the tenant pays a fixed rent amount, and typically, all expenses related to the property, such as utilities and maintenance, are included in that rent. In a gross lease, the landlord takes on the responsibility for operating expenses, allowing tenants to budget their costs more easily, as they only need to focus on paying rent without worrying about fluctuating utility costs.

In contrast, a net lease would mean that the tenant pays not only rent but also contributes to property expenses such as taxes, insurance, and maintenance, which adds variability to their housing costs. An index lease involves rent adjustments based on an index, often tied to inflation, resulting in changing payment amounts over time. A graduated lease has rent that increases at specified intervals, which also means the tenant cannot rely on a standard flat fee throughout the lease term. Thus, a gross lease represents the simplicity of a flat fee arrangement without added expenses.