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Bad Debt Reserve & Delinquency Aging
The accounting methodology categorizing past-due receivables into 30/60/90-day aging buckets and provisioning an allowance for uncollectable rent.
Bad Debt Reserve and Delinquency Aging is the accounting practice of classifying uncollected receivables into chronological aging buckets (30, 60, 90, 120+ days past due) and establishing an allowance for doubtful accounts.
Financial controllers adjust bad debt allowances monthly to reflect realistic collectability, preventing net operating income distortions on financial statements.
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See all Accounting & Finance terms →Additional Rent
Charges billed to a commercial or residential tenant beyond base rent, including CAM reconciliations, property taxes, insurance, and late fees.
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A commercial lease provision adjusting variable operating expenses to reflect 95-100% occupancy to ensure equitable pass-through billings.
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Contractual clauses permitting commercial tenants to inspect landlord invoices and ledger records supporting annual CAM true-up charges.
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The annual calculation reconciling actual shared building operating expenses against estimated monthly payments billed to commercial tenants.
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