Definition: Lease provisions defining limits on who pays operating expenses. An expense stop commonly sets an amount the landlord bears before additional charges pass to the tenant; a cap limits specified increases or charges.
Example
A lease makes a tenant responsible for its stated share of expenses above a base-year stop, subject to a negotiated cap.
Keep the distinction clear
The lease controls covered expenses, exclusions, base years, and whether caps are cumulative. A stop and a cap are not interchangeable.
Related terms
Lease · Net Lease · Gross Lease
Keep studying
References: FREC Course II syllabus, Session 15
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