Property Management
In Rhode Island, what are 'pass-through expenses' in a commercial lease?
AExpenses passed from one tenant to another
BOperating expenses (taxes, insurance, maintenance, utilities) that are charged to tenants in addition to base rent under a net lease structure✓ Correct
CThe property manager's fees passed through to the owner
DMortgage payments passed through by the owner to tenants
Explanation
In net lease arrangements, pass-through expenses are the property's operating costs (taxes, insurance, CAM charges) that the landlord 'passes through' to commercial tenants as additional charges beyond base rent.
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