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Real Estate Glossary

Allowance

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Richard Wilson
Written by Richard Wilson

Allowance is the set dollar amount supplied by the landlord under a lease that is to be used by a tenant for a specific purpose such as tenant improvements, design fees, and moving expenses. Should the expense surpass the allowance amount, this will then be the tenant’s responsibility. On the other hand, should the expense be less than the allowance, the savings are retained by the landlord unless otherwise stated in their agreement.

Allowance is the set dollar amount supplied by the landlord under a lease that is to be used by a tenant for a specific purpose such as tenant improvements, design fees, and moving expenses. Should the expense surpass the allowance amount, this will then be the tenant’s responsibility. On the other hand, should the expense be less than the allowance, the savings are retained by the landlord unless otherwise stated in their agreement.

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Richard Wilson

Richard Wilson

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