Massachusetts Clause Defining Operating Expenses

State:
Multi-State
Control #:
US-OL19034B
Format:
Word; 
PDF
Instant download

Description

This office lease form is a clause regarding all direct and indirect costs incurred by the landlord in the operation, maintenance, repair, overhaul, and any owner's overhead in connection with the project.

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FAQ

An operating expense clause lets your landlord recover normal out-of-pocket costs of running a building. That should be all it does.

Key Takeaways Operating expenses are maintenance costs that ensure the property can produce income, such as property taxes, insurance, and management fees. Mortgages, capital expenses, income taxes, and depreciation are not considered operating costs.

Operating expenses are the recurring costs to maintain a rental property in good condition. Common rental property operating expenses include marketing and advertising, leasing and property management, repairs and maintenance, insurance, and property taxes.

An operating expense is an expense that a business incurs through its normal business operations. Often abbreviated as OpEx, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.

Tenant improvements are typically not considered an operating expense.

Operating expenses, also known as OPEX, refer to the ongoing costs incurred by a business to maintain its day-to-day operations. They are a fundamental component of a company's income statement, also known as the statement of operations or profit and loss statement.

Examples of valid operating costs include property taxes, property insurance, maintenance, utilities, landscaping (which includes snow removal) and garbage collection. Valid operating costs will benefit all of the tenants in a commercial property?not just one or two.

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Massachusetts Clause Defining Operating Expenses