Property Management
In New Mexico, a property manager uses an 'expense stop' in a commercial lease. This means:
AThe tenant pays no operating expenses
BThe landlord pays all expenses up to a specified dollar amount; the tenant pays any excess above that amount✓ Correct
CExpenses are frozen at a fixed amount forever
DOnly NNN leases can have expense stops
Explanation
An expense stop is a threshold in a commercial lease below which the landlord covers operating expenses. Once actual expenses exceed the stop, tenants pay their proportionate share of the overage.
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