One difference between ________ is that the former requires the tenant to pay a lease cost that covers the landlord's debt service and profit, while the latter allows the freedom to occupy or sell the property.

• A. Gross lease and ownership
• B. Net lease and leasehold
• C. Triple-net lease and ownership
• D. Management and ownership

Answer: (C)

Understanding how lease types allocate costs helps you see why this pairing fits. In a triple-net lease, the tenant bears most ongoing property costs in addition to the base rent—property taxes, building insurance, and maintenance—so the overall lease payment is structured to cover those expenses as well as provide the landlord a return. Because the tenant is responsible for much of the property’s ongoing costs and financing considerations, the lease cost effectively supports the landlord’s debt service and profit. Ownership, on the other hand, is a form of property tenure that gives the owner the right to occupy the space and, crucially, to sell the property if they choose. A tenant under a lease (even a net or triple-net arrangement) does not have that freedom to sell the property or to own it outright. So the statement aligns with triple-net lease versus ownership: the former places the financial burden on the tenant, while the latter confers ownership rights, including the option to occupy or sell.