1. What is a Full Service Lease?

A full service gross lease is an all-inclusive lease agreement where the tenant pays a single monthly rent amount that includes all operating expenses, property taxes, insurance, and maintenance costs.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Monthly\_rent \) — The all-inclusive monthly payment amount
• \( Lease\_term\_months \) — Duration of the lease in months

Explanation: This calculation provides the total financial commitment for the lease period.

3. Importance of Lease Cost Calculation

Details: Understanding the total lease cost helps in budgeting, comparing different lease options, and making informed financial decisions for businesses.

4. Using the Calculator

Tips: Enter the monthly rent amount in dollars and the lease term in months. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in a full service lease?
A: Typically includes base rent, property taxes, insurance, maintenance, utilities, and sometimes janitorial services.

Q2: How does this differ from a net lease?
A: In net leases, tenants pay base rent plus additional expenses, while full service leases bundle everything into one payment.

Q3: Are there any hidden costs?
A: Full service leases should include all costs, but always review the lease agreement for any exclusions or caps on expense increases.

Q4: Can the monthly rent change during the lease?
A: Typically fixed for the lease term, but some leases may include annual increases - check your specific agreement.

Q5: Is this calculator suitable for residential leases?
A: While the calculation works the same, full service leases are more common in commercial real estate.