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 South Dakota, a gross lease is a type of rental 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 do not have to account for variable costs. A 'gross lease with stops' is a variation where the tenant agrees to pay additional amounts if the operating costs of the property exceed a predetermined level, 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. It's important for both landlords and tenants to understand their rights and obligations under South Dakota's landlord-tenant laws, which are primarily governed by South Dakota Codified Laws (SDCL) Title 43, Chapter 32. As with any legal agreement, it is advisable for both parties to consult with an attorney to ensure that the lease terms comply with state laws and to fully understand the implications of the lease agreement.