Expense Recovery

The shared expenses that a landlord passes on to the tenant, which results in the landlord "recovering" the expense that has been passed on.

Net Recovery

The tenant is responsible for their pro rata share of the recoverable expenses. If the tenant occupies 50% of the building, they will be responsible for 50% of the recoverable expenses.

Gross up

Allow users to assume a higher property occupancy percentage than what is in place when calculating expense Recoveries. Why do this? Imagine if a tenant occupies 45% of the building area and incurs $10,000 in utility costs. Normally, one would expect the tenant to reimburse the landlord the full $10,000, but if it happened to be the only tenant in the building (i.e., the building is 55% vacant), the tenant would technically only reimburse the landlord $4,500 as this would represent its pro-rata share. By grossing up the building occupancy to 100%, the landlord will recover the full $10,000 from the tenant, thus creating a mechanism to ensure that landlords receive the right number of Recoveries, and that no accidental leakage occurs.

Stop Recovery

The tenant is responsible for their pro rata share of the incremental change between the current year's recoverable expenses and the stop amount.

Base Year

The total operating expense in the first year of the analysis will be used as the stop amount for the recovery calculation

Fixed Recovery

The tenant is responsible for a fixed amount of the recoverable expenses.