What is a vacant recovery fee in real estate?

What is a Vacant Recovery Fee?

In real estate, a vacant recovery fee is a charge applied by landlords or property management companies to cover the cost of utilities or other operating expenses for a commercial space during periods when it is unoccupied. Typically found in triple net (NNN) leases, this fee ensures that the landlord can recover a portion of the expenses that would normally be the responsibility of the tenant if the property were leased. The fee is a way to mitigate the financial impact on the property owner of having vacant units that are not generating rental income but still incur costs for maintenance, utilities, and other services.

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