when is a modified gross lease used 
modified gross leases are common when multiple tenants occupy an office building the tenants will split utility bills but the landlord will generally pay other costs related to the building under a modified gross lease such as taxes and insurance the bottom linemodified gross leases are rental agreements where the tenant pays base rent at the lease s inception as well as a proportional share of other costs like utilities a gross lease is where the landlord pays for operating expenses while a net lease means the tenant takes on the property expenses other costs related to the property such as maintenance and upkeep are generally the responsibility of the landlord modified gross leases are common in the commercial real estate industry especially office spaces where there is more than one tenant 