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Expense cap is a maximum amount of money the landlord can charge the tenant for building operational expenses. Usually a base year is agreed upon by the landlord and the tenant (a year that the is used to determine rent escalations) and is used to calculate the building operational expenses yearly until the end or expiration of the lease.

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13y ago
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1y ago

An expense cap is a limit or maximum amount on the expenses that a company or individual is willing to incur. It serves as a budgeting tool to control and manage expenses within a predetermined range. The expense cap helps maintain financial discipline and ensures that spending does not exceed a specified threshold.

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Q: What is an Expense Cap?
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