Maximize Convenience with a Fully-Serviced Lease
A fully-serviced lease is a leasing agreement in which most or all of the operating expenses of a property are bundled into the rent paid by the tenant. These expenses often encompass property taxes, insurance, utilities, trash pickup or other costs tied directly to the property’s upkeep.
Comprehensive Costing§
In a typical fully-serviced lease, the tenant remits a specified monthly rent to the landlord, with the amount covering not just the base rent but also associated operating costs. The landlord then manages the apportioned funds, covering both the base rent and additional property-related expenses.
This concept differs from a simple full-service, or gross, lease. In a full-service lease, the tenant pays a fixed monthly rent, and the landlord covers all property-related expenses. For example, if a full-service lease charges a flat rate of $800 per month, the tenant is also responsible for setting up their own utility accounts and renter’s insurance. Here, the landlord handles property taxes, property insurance, maintenance and other expenses.
Comparing Options: Fully-Serviced vs. Full-Service Lease§
Consider an example to highlight the difference:
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Full-Service Lease: Tenant pays $800 per month for rent and must manage their own utility costs and renter’s insurance arrangements. Landlord goes on to secure other operating costs on their own.
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Fully-Serviced Lease: Tenant’s monthly obligation stands at $1,200, encompassing the $800 rent as well as property insurance, utilities, maintenance, and other property expenses—crucially simplifying tenant responsibilities.
Choosing a fully-serviced lease can significantly streamline expenses by rolling multiple payments and services into one, making it a particularly attractive option for tenants interested in ease and predictability in their monthly budgets.
Related Terms: gross lease, tenant agreements, property maintenance.
