An identified dollar amount, usually on a dollar per square foot per year basis, that the landlord is responsible for paying for operating costs. Any expenses over the stop will be charged to the tenant.
A ceiling or limit on the dollar amount one party, typically the landlord, will pay in an expense category. This ceiling is determined by adding a percentage or dollar amount to the base year costs. Return To Menu
A provision in a lease where the tenant agrees to pay the excess of certain operating expenses over a base amount. The landlord pays the expense up to the amount of the expense stop and the tenant pays or reimburses the landlord for the rest.
The maximum amount that a landlord will spend in operating a building that when exceeded, the tenant will pay a pro rated share of the amount exceeding the maximum.
An agreed dollar amount of taxes and operating expense (expressed for the building as a whole or on a square foot basis) over which the tenant will pay its prorated share of increases. May be applied to specific expenses (e.g., property taxes or insurance).
Provision in a lease establishing the maximum level of operating expense(s) to be paid by the landlord. Expenses beyond this level are to be reimbursed by the tenant. May be applied to specific expenses only (e.g. property taxes or insurance).