We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is a Full-Service Lease?

Malcolm Tatum
By
Updated: May 17, 2024

Sometimes referred to as a rental lease, a full-service lease is any type of lease arrangement where the lessor covenants to maintain the leased item for the benefit of the lessee or renter. This type of lease is sometimes utilized when it comes to leasing commercial property, private housing, or even equipment for construction or transportation. All costs associated with this complete maintenance arrangement are calculated into the monthly payments that are remitted to the lessor.

One of the more common examples of a full-service lease is found with housing situations. With a lease of this type, the owner of an apartment building or house commits to providing all utilities as part of the services extended to the tenant. In addition, the owner also covers expenses such as repairing damaged water pipes, replacing any major appliances that were included with the apartment amenities, and handling the upkeep of the landscaping around the building. The tenant in turn agrees to abide by all provisions within the lease agreement, including paying a specific monthly rental to the owner for the duration of the lease.

The same general approach is often used with the rental of commercial property. The landlord pays all utilities and maintains the structure, and in turn charges a monthly rental payment for the use of the facilities. As long as the owner maintains the property in accordance with the provisions of the lease, and the tenant does likewise, the full-service lease remains in effect up to the end date specified in the lease agreement. Assuming both parties are happy with the arrangement, they may choose to either invoke a rollover clause in the lease that automatically renews the contract for another period, or enter into a new full-service lease that allows the relationship to continue for several more years.

A full-service lease provides benefits to both parties involved in the contract. For the tenant, there is no need to establish utility accounts with various providers, or pay the deposits that those utility companies may require before extending services. In the event that a major appliance breaks down, the tenant does not have to be concerned with its replacement. Should the electrical wiring or the plumbing suffer some sort of breakdown, the owner deals with the repairs, with no out of pocket expenses incurred by the tenant.

The owner also enjoys several benefits as a result of the full-service lease. The arrangement often attracts quality tenants that choose to continue the business relationship over a number of years. In the event that repairs of some type must be made, the owner can make decisions on how to manage those repairs so that the integrity of the property is maintained. In many countries, the expenses incurred by this type of lease arrangement also offer significant tax breaks for the owner, which may be especially helpful if he or she owns several different properties.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
Share
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.