Expense Stop Law and Legal Definition

Expense stop is a lease provision that establishes the maximum expenses to be paid by the landlord. The remaining expenses over and above this limit have to be paid by the tenant. Expense stop represents a cap on the operating expenses that a landlord will pay.

The following is an example of a case law referring to the term:

Expense Stop: The sum specified in each Project tenant lease per square foot of net rentable space per year for full common area maintenance and operating expenses (including all ad valorem tax and other assessments) which does not pass through to the tenant but is an obligation of the landlord. [In re 5300 Memorial Investors, Ltd., 973 F.2d 1160 (5th Cir. 1992)].