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
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.
