### What is a fully-serviced lease? - [x] A lease agreement where most or all operating expenses are included in the rent - [ ] A lease agreement where only utilities are included in the rent - [ ] A lease agreement where the tenant pays all operating expenses separately - [ ] A lease agreement solely for commercial properties > **Explanation:** A fully-serviced lease includes most or all of the operating expenses, such as property taxes, insurance, utilities, and other related costs, in the rent paid by the tenant. This ensures that the tenant only has to make a single payment covering both rent and associated expenses. ### Which of the following is NOT typically included in a fully-serviced lease? - [ ] Property taxes - [ ] Utilities - [ ] Trash pickup - [x] Mortgages on the property > **Explanation:** A fully-serviced lease typically includes expenses like property taxes, insurance, utilities, and trash pickup. However, it does not cover the landlord's mortgage payments, which remain the landlord's responsibility. ### How does a fully-serviced lease differ from a full-service lease? - [x] In a fully-serviced lease, the tenant pays a combined rent that includes operating expenses. - [ ] In a full-service lease, the tenant pays separate bills for operating expenses. - [ ] In a fully-serviced lease, the landlord pays all operating expenses. - [ ] There is no difference between a fully-serviced lease and a full-service lease. > **Explanation:** A fully-serviced lease includes combined rent and operating expenses in a single payment made by the tenant. In contrast, in a full-service lease, the tenant pays a fixed rent while the landlord covers all operating expenses separately. ### Which scenario best describes a fully-serviced lease arrangement? - [ ] The tenant pays $800 monthly for rent and also sets up their own utility accounts - [x] The tenant pays $1,200 monthly, which includes rent, utilities, and other operating expenses - [ ] The tenant is solely responsible for all property taxes - [ ] The landlord covers all expenses, including tenant mortgages > **Explanation:** In a fully-serviced lease, the tenant pays a higher rent amount that includes the $800 rent plus an additional amount that covers utilities, property insurance, and other operating expenses totaling $1,200. ### What expense is directly covered by the tenant in a fully-serviced lease? - [ ] Property maintenance - [ ] Utilities - [ ] Property insurance - [x] There is no direct expense covered by the tenant; everything is included in the rent > **Explanation:** In a fully-serviced lease, all operating expenses, including property maintenance, utilities, and property insurance, are included in the tenant's rent, allowing the tenant a single, combined payment. ### Why might a landlord prefer offering a fully-serviced lease? - [x] It simplifies bill collection and ensures operational costs are covered - [ ] It allows tenants to manage their own utility accounts - [ ] It maximizes the tenant’s control over property maintenance - [ ] It reduces the overall rent amount for the tenant > **Explanation:** A fully-serviced lease simplifies financial transactions, ensuring that operational costs are automatically covered, thus reducing financial risk and complexity for the landlord while ensuring a steady income. ### What type of lease requires tenants to set up utility accounts in their own names separately? - [x] Full service (gross) lease - [ ] Fully-serviced lease - [ ] Triple net lease - [ ] Async lease > **Explanation:** In a full service (gross) lease, the tenant pays a fixed monthly rent and is responsible for setting up their utility accounts and paying those bills separately. The landlord takes care of property taxes and maintenance costs. ### Which of the following expenses is a landlord unlikely to pay in a fully-serviced lease? - [ ] Property taxes - [x] Tenant-specific liability insurance - [ ] Utility bills - [ ] Building maintenance > **Explanation:** The landlord typically does not pay tenant-specific liability insurance in a fully-serviced lease arrangement; this is the tenant's responsibility. The landlord covers other property-related expenses. ### Which of these is a benefit for tenants in a fully-serviced lease? - [x] Streamlined single monthly payment covering rent and expenses - [ ] Greater control over utility providers - [ ] Potential for lower overall monthly payments - [ ] Reduced responsibility for property insurance > **Explanation:** A key benefit for tenants in a fully-serviced lease is the streamlined, single monthly payment that covers rent and all operational expenses, providing convenience and financial predictability. ### In a fully-serviced lease, who typically handles the property’s operating expenses? - [x] The landlord - [ ] The tenant - [ ] A property management company directly hired by the tenant - [ ] It varies depending on the agreement > **Explanation:** In a fully-serviced lease, the landlord manages and pays for the property's operating expenses, simplifying the process for the tenant, who pays a higher rent amount that all-inclusive.