Property Management

In Ohio commercial leasing, a 'base year' in an expense stop lease means:

AThe first year's rent is always zero
BThe landlord pays operating expenses up to the amount in the base year; the tenant pays any increases above that level✓ Correct
CThe tenant only pays rent for the base period of the lease
DAll expenses are reset to zero at lease renewal

Explanation

In a base year expense stop lease, the landlord covers operating expenses up to the base year amount. If expenses increase above the base year level, the tenant pays their proportionate share of the increase.

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