Beyond the Fine Print: Tenants Must Beware of the Hidden Costs Often Found in Leases

May 18, 2011News

In this day of concern about operating costs, tenants should be wary of hidden expenses in leases.

In this day of concern about operating costs, tenants should be wary of hidden expenses in leases.
Basic rent is not the only cost. In fact, the items often labeled as “additional rent” may approach, if not exceed, basic lease payments.
Additional rent expenses such as real estate taxes, special district taxes, insurance, and other operating expenses are often charged and apportioned based on a tenant’s proportionate share of the square footage of a building. There are several items of concern with additional rent. Here are some that all business owners should be aware of, and they are often in the form of questions that must be answered.

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