Property Management

In New Mexico, a 'gross lease with a base year stop' means:

AThe tenant pays all expenses from the first year
BThe landlord covers operating expenses up to the base year level; tenant pays increases above that level✓ Correct
CThe lease terminates at the end of the base year
DRent is tied to the consumer price index

Explanation

In a gross lease with a base year stop (expense stop), the landlord pays all operating expenses up to the base year amount. If expenses increase in subsequent years, the tenant pays their proportional share of the increase.

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