REALWorld Law

Commercial leases

Communal costs

Who pays for the maintenance and repair of areas used by several lessees, for example car parks and gardens?

United States

United States

Leases of premises within multi-tenanted properties generally provide an operating expense clause detailing a mechanism for the tenants to proportionately share the cost of maintaining and operating the common facilities. Some leases require tenants only to pay increases above those operating expenses that the landlord incurred in a set ‘Base Year’.