A gross lease—also referred to as a full service lease or gross rent or a gross rent lease—is a lease with a fixed monthly or annual rental fee that includes all rent and costs of operating the property, such as utilities, maintenance, taxes, and insurance. In this way, it is similar to a typical residential lease.

A variation of a gross rent lease is a “gross lease with stops”—meaning the tenant will contribute additional amounts if the landlord’s operating costs increase above a certain level. The level at which the tenant is required to contribute additional amounts to the landlord’s operating costs is known as the stop level, as that is where the landlord’s obligation to pay all of the costs (using the fixed rent payments) stops.

In Arkansas, a gross lease is a type of commercial lease agreement where the tenant pays a fixed amount that covers both the rent and all or most of the property's operating expenses, which can include utilities, maintenance, taxes, and insurance. This arrangement simplifies budgeting for tenants since they do not have to account for variable costs each month. A 'gross lease with stops' is a variation where the tenant agrees to pay additional amounts if the operating costs exceed a predetermined threshold, known as the 'stop level.' This means that while the landlord covers all operating costs up to the stop level, any costs beyond that point are the tenant's responsibility. The specific terms of a gross lease, including the stop level and what expenses are covered, are subject to negotiation between the landlord and tenant and should be clearly outlined in the lease agreement. Arkansas state statutes and federal law do not provide specific regulations for gross leases, so the terms are largely dictated by the lease contract itself. Tenants and landlords should consider consulting with an attorney to ensure that their lease agreements are fair, clear, and legally sound.