Legal Definitions - expense stop

An expense stop is a provision in a lease agreement that sets a limit on the maximum expenses that the landlord will pay. If the expenses exceed the limit, the tenant is responsible for paying the remaining expenses.

For example, a commercial lease may include an expense stop of $10,000 per year for maintenance and repairs. If the landlord incurs $12,000 in expenses for maintenance and repairs, the tenant would be responsible for paying the additional $2,000.

This provision is beneficial for landlords because it limits their financial liability for expenses related to the property. It also encourages tenants to be mindful of their usage and to take responsibility for any excessive expenses.