What expenses do commercial tenants need to pay?
Commercial tenants are typically responsible for various expenses beyond the base rent. These may include:
Property taxes: Tenants often pay a portion of the property taxes based on their leased space.
Insurance: Tenants may be required to carry their own insurance policies, including liability and property insurance.
Maintenance and repairs: Tenants are usually responsible for maintaining the interior of the leased space and may share costs with the landlord and/or other tenantsfor common area maintenance.
Utilities: Tenants generally pay for their own utilities, such as electricity, water, and gas.
Operating expenses: Depending on the lease type, tenants might also contribute to operating expenses like janitorial services, landscaping, and security.
Understanding these expenses can help your tenants budget more effectively and possibly avoid unexpected costs that could impact their business. Working with an experienced attorney can ensure all tenant expenses are clearly outlined and agreed upon in your lease agreement.