Which lease provisions specifically guard against operating cost increases to the property owner?
A)graduated lease and percentage lease
B)maintenance-increase-recoupment provision and net lease
C)percentage lease and straight lease
D)graduated lease and straight lease

Question

Quizplus · Accepted Answer

The maintenance-increase-recoupment provision and net lease are lease provisions that specifically guard against operating cost increases to the property owner. In a maintenance-increase-recoupment provision, the tenant is responsible for covering any increase in the property's operating costs, such as maintenance and repairs. In a net lease, the tenant is responsible for paying a portion or all of the property's operating expenses, such as taxes, insurance, and maintenance costs. This relieves the property owner from being susceptible to unexpected operating costs, therefore protecting them from any financial liabilities. Graduated leases and percentage leases do not have provisions that directly protect against operating cost increases for the property owner.

Which Lease Provisions Specifically Guard Against Operating Cost Increases to the Property