Gross Reimbursement Structure

A type of lease in which the landlord (or the lessor) is required to pay all costs for maintaining the property. A gross reimbursement structure is the opposite of a net lease, in which the tenant is responsible for the property maintaining costs.

Some examples of common maintenance needs are:

  • landscaping
  • paint
  • parking lot upkeep
  • gates / intercoms

Many people looking to buy commercial properties overlook or forget to take into account the gross reimbursement structure, which can leave them confused or surprised about this extra cost when their property begins to occupy tenants. The gross reimbursement structure may be a small or significant cost, depending on the size and upkeep required for the property.

Some examples of property maintenance which may raise the gross reimbursement structure are:

  • missing siding
  • gutters hanging off a structure
  • badly peeling paint
  • damaged fences
  • dead plants
 

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