Sometimes, an Expense or Base Year Stop is specific to certain expenses.

LeaseMatrix does allow for itemized Expense Stops. Below is one such example.

In this instance, there is \$2.00 Expense Stop on Electricity, with the Landlord passing thru any overages. Here is what we input:

Step 3: Expense Assumptions Rather than using the Expense Stop input, we'll need to detail out this expense line item for our tenant. In doing so we enter:

#1. Electricity Pass Thrus. This amount is assumed to be equal to the Expense Stop in this instance at \$2.00 per RSF

#2. The Pass Thru Inflation Rate. We assume the cost of Electricity will grow at an Inflation rate of 3.00% per year. This inflation rate represents the overage of the Electricity expense which will ultimately be passed thru to the Tenant.

#3. Electricity Base Year. This -\$2.00 per RSF amount could represent the estimated Base Year or a specified Expense Stop. Note this input number is negative. This is because the Landlord is the one paying for this amount, so it is deducted from what the Tenant's actual Electricity usage is.

#4. The Base Year Inflation Rate. Input the rate of 0.00% here, because this line item is the Base Year input, so, by definition, this number does not increase.

Once these inputs are complete, we can click Save & Preview. Here is the result: Notice how, in Year 1, the Electricity Pass Thru amount of \$22,400 is offset 100% by the Electricity Base Year of -\$22,400. Then in Year 2, \$672 is Passed Thru to the Tenant. (eg. \$22,400 * 3.0% inflation = \$672.00).

This level of detail is a great way to use LeaseMatrix's detailed reports to help your tenant understand exactly what an Expense Stop or Base Year Stop is.