What does a base stop refer to in property management?

Study for the BOMA Foundations Exam. Enhance your skills with flashcards and multiple choice questions. Each question comes with hints and explanations to help you get confident for your test!

A base stop refers to a threshold for expense payments in property management. This term is often used in lease agreements, particularly in commercial real estate. Under a base stop provision, the landlord is responsible for operating expenses up to a certain limit or "stop" amount. Any expenses that exceed this threshold are typically passed on to the tenant. This arrangement helps landlords manage costs while allowing tenants to understand their potential liabilities regarding operating expenses.

In contrast, fixed amounts of rent, guaranteed cash flows, and specific operating incomes represent different concepts unrelated to the mechanisms of expense management and tenant obligations defined under a base stop. A base stop specifically serves to delineate responsibility between landlords and tenants concerning operational expenses.

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