Building Space Lease Agreement

☐ are not included in the base rent. From the date of entry into force, the tenant agrees to pay the lessor`s share in the operating costs. The customer`s initial monthly estimate for operating costs is – per month. For the purposes of this agreement, the tenant`s proportionate share of operating costs – the total cost of operating the capital – may not exceed a given month. The proportional share of the tenant is determined by the division of the number or laudable square meters in the premises denied by the total number of rentable square meters in the property rented or available for rent during the year. « Operating costs » include the total cost and costs of administration, insurance, equipment, lighting, repair, maintenance and monitoring of real estate property, including the exterior spaces of real estate and common space, including, in particular, but not only expenses for or related to: insurance premiums and deductibles, management and accounting costs. , as well as an annual supplement of 1%per year for the operating costs of a reserve fund for major repairs and renovations. At each basic monthly rent, the tenant must pay an estimate of the tenant`s share of the operating costs. These monthly estimates are based on actual operating costs from the previous year. On an annual basis, the lessor must reconcile the tenant`s payments with the actual operating costs.

In the event that the tenant`s payments are less than his share in the actual operating costs, the tenant must pay this default within days of the landlord`s request. If the tenant exceeds the payments of his share in the actual operating costs, the lessor applies the overpayment to the following monthly estimate. An operating clause allows your landlord to recover the normal cost of running a building. That should be all he does. The operating costs listed in your invoice should directly match the benefits you obtain under the lease and should meet an objective standard such as GAAP (generally accepted accounting principles), not the specific agreements to your landlord. maintenance. In a typical multi-storey office building, the owner is responsible for the repair of certain classified objects – usually building elements, exterior and parts of the common areas of the building. You are responsible for the maintenance and repair of everything in your room. Exclusions.

Some properties should be expressly excluded from operating costs: electricity used as rental premises (the landlord collects it individually from each tenant); Executive salaries; Counselling fees Tuition fees for market research; Commissions and advertising fees; Upfront landscaping costs Repair or replacement work Penalties imposed because the lessor does not pay taxes on time; Higher interest costs and expenses caused by the lessor`s refinancing of the property; The lessor must pay money if he is late under a lease or other agreement; All legal fees to settle disputes with the lessor; an excessive amount paid by the lessor to a contractor or seller because of a particular relationship. Renewal option – Use this option, if the tenant wants to have the option to stay longer in the building, they can apply for a « renewal option » of the lease. This gives them the right to renew the lease of a certain rental price if they wish. For example, a triple net tenancy agreement (NNN) would require the tenant to pay, in addition to the basic rent, annual taxes, insurance and maintenance costs.