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 Iowa, a gross lease is a type of commercial lease agreement where the tenant pays a fixed amount that covers the rent and all other property-related expenses such as utilities, maintenance, taxes, and insurance. This arrangement simplifies budgeting for tenants since they can anticipate their monthly costs without worrying about variable expenses. 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 costs up to that point, any increases beyond the stop level would be the tenant's responsibility. The specific terms of a gross lease, including any stop levels, should be clearly outlined in the lease agreement, and it's advisable for tenants to review these terms with an attorney to fully understand their financial obligations.