Which type of lease incorporates maintenance costs into the rent?

A modified gross lease is the correct answer because, in this type of lease agreement, the landlord covers some or all operating expenses of the property, allowing for a more predictable cost for the tenant. Maintenance costs are often explicitly incorporated into the rent, rather than being passed entirely on to the tenant as in other lease types. This structure provides a balance where the landlord manages certain costs while helping tenants avoid the variability of separate maintenance charges.

In contrast, a gross lease typically denotes that the landlord pays all operating costs, including maintenance, but it usually comprises a fixed rental rate without the tenant incurring additional costs. A flat lease refers to a set rental rate for the duration of the lease with no additional costs for maintenance or other services, which is less common and does not flexibly account for maintenance costs. A net lease usually shifts more responsibility onto the tenant for covering specific expenses, including property taxes, insurance, and maintenance, meaning that maintenance costs would not be included in the rent.