An Expense Stop, also known as a Stop Clause, is a provision in a lease agreement that sets a limit on the amount of operating expenses a landlord will cover. Any expenses beyond this limit are the tenant's responsibility.
A stop clause in a lease stipulates the amount of operating expenses above which the tenant must bear the cost. Often, the base amount is the expense for the first full year of operation under the lease.
A tax stop is a clause in a lease agreement that sets a limit on the amount of property taxes the lessor (landlord) is responsible for paying. Any property taxes exceeding this limit are paid by the lessee (tenant).
