How do expense stops work?
asked 2012-01-15 20:56:50 -0500
I have a lease proposal that includes expense stops in the terms. I am not familiar with expense stops and was hoping someone could give me a quick rundown on how they work.
asked 2012-01-15 20:56:50 -0500
I have a lease proposal that includes expense stops in the terms. I am not familiar with expense stops and was hoping someone could give me a quick rundown on how they work.
answered 2012-01-16 08:34:56 -0500
The CCIM training manual defines Expense Stop as:
Expense stop - The level (or maximum amount) up to which the landlord will pay certain operating expenses. Amounts above the expense stop are the tenant's responsibility.
This term typically comes into play in a lease where the LL has contracted to pay some or all of the CAM / operating expenses. The term limits the liability of the LL to pay the specified expense above a certain amount.
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Asked: 2012-01-15 20:56:50 -0500
Seen: 81 times
Last updated: Jan 16 '12
