Answer: paid by the owner.

## Explanation In real estate leasing, there are different types of leases that determine how operating expenses are allocated between the landlord (owner) and tenant: ### Gross Lease - **Operating expenses are paid by the owner/landlord** - The tenant pays a fixed rent amount that includes all operating expenses - Common operating expenses covered by the owner include: - Property taxes - Insurance - Maintenance and repairs - Utilities (in some cases) - Common area maintenance ### Net Lease - Operating expenses are paid by the tenant - Tenant pays base rent plus some or all operating expenses ### Triple Net Lease (NNN) - Tenant pays all operating expenses including taxes, insurance, and maintenance ### Modified Gross Lease - Operating expenses are shared between owner and tenant **Therefore, under a gross lease, the property's operating expenses are paid by the owner, making Option A the correct answer.**

Author: LeetQuiz Editorial Team