Gross Rental is the total rent payable by a tenant, whereas Net Rental is the tenant’s rental portion that excludes their contribution to property operating costs. These excluded costs could comprise of rates, insurance, property maintenance, security etc. If the Landlord is a registered VAT vendor (most commercial and industrial landlord’s are VAT vendors) then VAT will be added to the rental. Generally, Airport property quotes Gross rentals excluding VAT.

Other terms for net leases are a FRI (Fully repairing, maintaining and insuring lease) lease or Triple Net Lease. Both these terms imply that rates, insurance and property maintenance are excluded from the net rental and are for the tenant’s account.