Most leases that provide for a pass-through of operating expenses to tenants provide for an equitable proration of such expenses for any partial lease year.
In the Spotlight: Beware of Operating Expenses Incurred Subsequent to the Lease Term
Most leases that provide for a pass-through of operating expenses to tenants provide for an equitable proration of such expenses for any partial lease year. The typical language provides that the tenant is liable for its proportionate share of operating expenses incurred by the landlord for any period during the lease term. The arithmetic is very simple — if the lease expires on March 31st, the tenant is responsible for its share of expenses incurred by the landlord through March 31st.
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William R. CroweThis premium content is locked for LawJournalNewsletters subscribers only
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