Property Management

In a commercial lease, a 'base year' expense stop means:

AThe landlord pays all expenses in the first year
BThe tenant pays any operating expense increases above the base year amount✓ Correct
CThe lease term begins at the start of the calendar year
DExpenses are fixed for the entire lease term

Explanation

A base year expense stop establishes a base level of operating expenses. The tenant is responsible for any increase in operating expenses above the base year amount, providing landlords protection from rising costs.

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