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business lease renewal?
Hello, I just signed a renewal lease for my business for next year with an increment of $30.00 each year and the landlord changed his mind and wants to increase it by $300.00 each year. Her excuse is the cam charges (AAA) were not added I have been at this location for 4 years and now she is making it very difficult for me to survive and has a very poor attitude. Please help :(4 months ago - 5 answers
CAM charges are usually a fixed monthly amount that estimates your portion of what will be due. It is NOT rent. It goes into an escrow account. At the end of each year the landlord should present you with an accounting of the actual CAM charges that were paid on your behalf and either issue you an additional bill or give your a refund.
Your landlord doesn't just get to pick a random amount for CAM just like a mortgage company doesn't get to pick a random amount to keep for your insurance and taxes.
With that being said, if you ask for an actual accounting of the CAM expenses, you may become unhappy. If your landlord doesn't have it together she may discover that you really should be paying a lot more than you are.
It's really up to you how you want to handle it.
If the lease has already been executed by both parties, well, you can just say sorry, it's a done legal document. But I'd start looking for somewhere else to relocate as your relationship may probably deteriorate.
Consider the cost of moving. Signage, tenant improvements, moving expenses, fixture, furnishings, being closed to move....is all of that more or less expensive than what she wants for CAM?
An attorney that specializes in commercial real estate would probably be helpful to you.
just talk to landlordby Alex Do - 4 months ago
You sign the lease or move somewhere else. You could try to talk her down a bit but if she won't budge (or won't budge enough) then leave. She's just trying to make as much as she can off the place and probably thinks she could get this rent from someone else if you left.
You do, in the question, say you already signed the lease and if thats the case and it stipulates $30 increment, then the landlord will have to wait before they can change it but if its not signed then they can charge whatever they want.
Landlords suck, I'm telling you. It's hard to say if $300 more is reasonable. This is $300 per year I assume. How much are you paying now? Is it a 5% increase, or 10% increase or more than that? Now that the landlord has requested this change the lease you agreed to is invalid. Maybe it's time to play hardball. Say that you simply can't afford that increase, and if that is built in, you want a 1-year lease with two additional one year options (or however many years you want but make sure they are all in one-year increments). And add the clause that the non-rent items, the triple net and CAM, will be negotiated at the start of each option year.by I Like Turtles - 4 months ago
If you signed that it's $30 a year then that what it is and they cannot change that just because they want to. At least it doesn't seem right that they can just make things up as they go.by Silly Girl - 4 months ago