What Does Modified Gross Include

With a modified gross lease, the tenant takes over expenses directly related to his or her unit, including unit maintenance and repairs, utilities, and janitorial costs, while the owner/landlord continues to pay for the other operating expenses.

What is the difference between gross and modified gross?

Gross leases tend to be the simplest lease structure for the tenant to understand because the tenant is not responsible for any operating expenses. This is in contrast to a modified gross lease which is when the tenant and the landlord both share in the responsibility for paying the property’s operating expenses.

What is the difference between a modified gross lease and a triple net lease?

Under the terms of a triple net lease, a tenant must pay rent and all operating costs related to the property. Under the terms of a gross modified lease, a commercial tenant pays some, but not all, of the operating costs.