What is the Definition of Reimbursement Structure?

Reimbursement Structure

Noun

Definition: (Reimbursement Structure) A payment or accounting structure in which the cost for utilities and/or services incurred by the tenant is paid to the provider by the lessor and subsequently reimbursed, usually on a prorated basis, by the tenant. Typically, the associated item is allocated between the lessor and lessee based on the lessees proportionate share of net rental area (e.g. utilities, real property taxes, insurance).

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