Can anyone give me a simple definition between Gross & Semi-Gross rents.
Nothing is simple in this game....anyone who says so ain't telling you the real world facts.
Scott has given a good account above.
I've got one retail Tenant on a semi-gross Lease.
He pays rent, plus chips in his share for { CR / WR / LT / Ins }
He pays nothing for any of the other operating expenses to keep the place running, like { aircon / audit fees / music / car park maintenance / cleaning wages / cleaning consumables / fire and safety costs / garbage removal / gardening / light and power / pest control / repairs and maintenance / security }
So...
A gross lease would only require that the Tenant pay rent.
A semi-gross Lease would require the Tenant to pay rent, plus chips in their share for { CR / WR / LT / Ins }.
A nett Lease would require the Tenant to pay rent, plus chips in their share for everything listed.
What I've found - especially for retail Tenants - by far the best method is to simply wrap the entire expenses up into one big fat number and call that the rent. They are happy to pay that.
Come back at them all the time presenting them with extra little payments all the time and they kick up a fuss.
A simple analogy.
Ask them to pay $ 8 rent and $ 2 outgoings. They'll pay the $ 8 rent bill no problems and b1tch and moan all day long over the other $ 2.
Ask them to pay $ 10 and nothing else....they'll pay that gladly...and life is bliss for both of you !!
IMHO, nett Leases only work for really big Tenants who act professionally.