In net leases, tenants are responsible for paying their share of the maintenance and operating costs of the building. This includes maintainging lobbies, hallways, garages, elevators, HVAC systems, management fee for a leasing office.
Tenants have an opportunity to negotiate what costs are included in the operating costs. By default, landlords will strive to pass along the maximum amount of the costs. Tenants should negotiate an enumerated list of what is included or excluded. There is a long list of services that the landlord may include, but the basic distinction is between capital expenses and costs of daily maintenance. There are some costs that should not be passed along to tenants, and the tenants should monitor attempts by the landlord to impose those costs. Tenants can negotiate an amortization of the expense rather than a lump sum. Landlords may lease items in order for those items to be classified as operating expenses.
Apportionment of these expenses amongst tenants may be limited based on the existing leases with other tenants.
Get started with your lease review by an Oregon Commercial Leasing Attorney.
Continue to read our articles on Oregon Commercial Leases.
Read about other legal services from Oregon Real Estate Lawyer or visit our blog on Oregon Real Estate Law.
For any additional information, contact us at (503) 274-9001 or by CFLink or go to the home page of Andrew Svitek, PC.