Michigan PL Practice Test 2025 – The All-in-One Resource to Master Your Exam Success!

A net lease is a type of lease where the tenant agrees to pay not only the base rent but also certain additional expenses associated with the property. These expenses can include things like property taxes, insurance, and maintenance costs, which are typically passed on to the tenant. This structure provides property owners with more predictable income, as they shift some of the financial responsibilities to the tenants.

In contrast, a full-service lease usually includes most operating expenses within the rent, meaning the landlord covers them. A percentage lease typically involves the tenant paying a base rent plus a percentage of their sales, which is often used in retail spaces. A flat lease involves a fixed amount of rent without additional costs, making it simpler but not requiring tenants to pay for additional operating expenses. Each of these other options operates under different principles that do not align with the requirements outlined in the question.