What are the methods of recoupment of short workings
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There are mainly two methods of recoupment: The fixed method and the Floating method.
- Recoupment is a right given to the person who holds the lease of a property by the owner to reduce the short workings.
- In the fixed method, the landlord agrees to compensate for short workings in the beginning. (First three or four years)
- Short workings beyond this period can not be compensated using this method.
- This promise is valid only over a fixed period.
- In the floating method, the landlord agrees to compensate for short workings in the next 2 or 3 years.
- If it is valid for the coming two years, short workings in the 3rd year can not be recouped.
- #SPJ2
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