Which of the following is considered a primary characteristic of a net lease?

A primary characteristic of a net lease is that the tenant is responsible for additional operating expenses beyond just the basic rent. This can include costs such as property taxes, insurance, and maintenance, which are typically the landlord's responsibility in a gross lease. In a net lease, these expenses shift to the tenant, making it crucial for both parties to clearly outline the terms of responsibility in the lease agreement. This arrangement allows landlords to have predictable income from the rent while minimizing their risk associated with fluctuating operating costs.

The other choices do not accurately describe net leases. In a lease where the landlord covers all expenses, it would be more aligned with a gross lease rather than a net lease. If the tenant is only responsible for utilities, it suggests a limited scope of financial responsibility, which is not consistent with the net lease structure. An indefinite lease term is not specific to net leases, as they can have fixed terms; this characteristic applies to various lease types and does not define a net lease specifically.