Property Management

An Indiana commercial lease that requires the tenant to pay a 'base year stop' means the tenant:

AOnly pays for the base year and stops paying thereafter
BPays operating expense increases above the base year amount, with the landlord absorbing expenses up to the base year level✓ Correct
CStops paying rent after one year
DPays a fixed rent that does not increase

Explanation

In a base year stop lease, the landlord pays all operating expenses in the base year (first year of the lease). In subsequent years, the tenant pays only their share of expenses that exceed the base year amount.

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