Property Management
A Montana property manager facing increasing operating costs must evaluate which costs can be 'passed through' to commercial tenants under their leases. This requires careful review of:
AThe tenant's business plan
BEach lease's specific CAM, operating expense, and pass-through provisions, which vary by lease type (gross, modified gross, NNN)✓ Correct
COnly the original lease execution date
DState law, which sets pass-through maximums for all commercial leases
Explanation
Cost pass-through rights depend entirely on the specific lease terms. Gross leases have few or no pass-throughs; NNN leases pass most costs to tenants; modified gross leases fall in between. The property manager must understand each lease's specific provisions.
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