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controllable expenses |
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controllable expenses Real estate expenses one may manage and keep as low as practical under the circumstances.For an office building,controllable expenses would be things like janitorial services,office personnel,and,to a limited extent,electricity.The most common noncontrollable expense is real estate taxes. Most contracts or leases will define what they mean by controllable expenses, without regard to what the common understanding of the phrase might be.The phrase is important because many commercial leases require tenants to pay their pro-rata share of increases in building expenses each year.Wise tenants will negotiate an upper limit on the contributions; wise landlords will insist that the “cap”apply only to controllable expenses. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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While credit unions recognize the need for ongoing professional development, many are under increasing pressure to reduce travel and other controllable expenses," said President/CEO such as by consolidating back office functions, committing to reduce controllable expenses by 6 percent over four years and integrating its three bus companies. Often the difference between positive and negative cash flow is simply a matter of prudently monitoring controllable expenses, such as maintenance. |
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