There are broadly three lease structures you’ll encounter. Understanding them matters because they affect your total occupancy cost — not just the headline rent figure.

A gross lease means you pay one fixed amount. The landlord covers the building’s outgoings from that rent. Easier to budget for, more common in smaller or older buildings.

A net lease means you pay a base rent plus a proportional share of the building’s running costs — council rates, strata levies, water connection charges, insurance where applicable. Your total cost is the sum of both, and outgoings can vary year to year. Always ask for a written estimate before you agree to a net lease.

The third option is a semi-gross lease, where you’ll pay the fixed amount for the first year with the Landlord covering the first-years outgoings, but any increases in the outgoings from that years outgoings will be included on top of the rent. Put simply, if the outgoings in year 1 are $10,000, and in year two they jump to $11,000, then you would cover the difference being $1,000.