Absolute Net Rent is a leasing structure where the tenant is responsible for all property-related expenses, including taxes, insurance, and maintenance, leaving the landlord with no financial obligations related to the property.
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 security deposit is a cash payment required by a landlord, to be held during the term of a lease to offset damages incurred due to actions of the tenant.
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 triple-net lease (NNN) is a commercial lease agreement where the tenant agrees to pay all expenses of the property, aside from the rent. These include real estate taxes, building insurance, and property maintenance.
Utilities refer to essential services like water, sewer, gas, electricity, and telecommunications that are needed for the operation of a building. Understanding utilities is crucial for managing operational costs in both residential and commercial properties.
In real estate, to 'vacate' means for a tenant to terminate occupancy and leave the premises, usually at the end of a lease term or after giving proper notice. It involves removing all personal possessions and handing back the property to the landlord.
