What defines the landlord's responsibility in the base year of a lease?

The base year of a lease is a critical point in determining the financial responsibilities surrounding expenses related to a leased property. In this context, the landlord's responsibility typically focuses on covering expenses during the initial year of the lease, which establishes a benchmark for future annual costs.

Option C is accurate as it reflects this principle: the landlord agrees to pay for operating expenses during the base year, allowing all parties to understand and manage their ongoing obligations. This means that any costs incurred by the landlord for maintenance, property management, and other operating expenditures are assumed by them in the first year.

Understanding this framework is vital since, after the base year, typically the tenant will be responsible for any increases in those operating expenses. This arrangement ensures predictability and fairness in how costs are managed throughout the duration of the lease, with the base year acting as a reference point for calculating future expenses that may be passed on to tenants.