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Debunking the Myth – Repair Expense Gross-up?

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Introduction In the real estate industry, some publications that cater to property owners and managers promote the concept that maintenance expenses like tenant services requests are subject to gross-up because they are provided to the tenants or to their premises. However, unless specifically stated in the lease agreements between the owner and the tenant, per […]

Debunking the Myth – Management Fee Gross-up?

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Introduction – Management Fee Gross-up Myth In the real estate industry, the prevailing view is that there are three primary building operating expenses. 1), Premises management fees, 2)In true occupancy-dependent premises cleaning costs, and 3) premises utilities costs. This view states that these operating expenses are subject to the gross-up adjustment solely because the costs […]