What kind of lease would require the lessee to pay the taxes, insurance, repairs, and other operating expenses of the premises in addition to the regular rental payment?

A percentage lease ties the rental payment to the revenue generated by the lessee’s business, commonly used in retail spaces. While it may include base rent and a percentage of sales, it does not typically require the lessee to cover taxes, insurance, or other operating expenses, making it distinct from a net lease.

In a gross lease, the landlord covers all operating expenses, including taxes, insurance, and maintenance, while the tenant pays only the agreed-upon rent. This structure contrasts with a net lease, where the lessee assumes additional financial responsibilities beyond the base rental payment.

A graduated lease features scheduled increases in rent over time, usually stipulated within the lease agreement. Although it may adjust the rental amount periodically, it does not inherently require the lessee to pay additional expenses like taxes or maintenance, which is a defining feature of a net lease.