For a modified gross lease should a tenant have to pay for a portion of water, sewer and trash and common area

In Leasing Property - Asked by Curt M. - Dec 1, 2016
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Answer(s)

Bharathi I.
Broker/Agent
Hillsborough, NJ

Modified lease is a negotiated real estate agreement between Landlord and Tenant. At the inception of the gross lease Tenant pays base rent, in susbsequent year Tenant takes responsibity to his own unit including base rent plus proportional share of other cost associated with property. For example Property taxes, insurance, Common area mainenance(CAM) utilities and janitorial cost.
It is very important to use a knowledgeable commercial agent and commercial attorney who would negotiate on your behalf and walk you through the process of securing a lease on your desirable commercial space.
I hope this helps you.

Dec 2, 2016
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John P.
Broker/Agent
Glen Burnie, MD

Your professional will identify to you all the areas of "Modification" as the Landlord offers. These could be but not limited to electric//gas; janitorial;Common Area Maintenance; Parking-almost anything, I've even seen Snow removal. The lease will clearly identify these items. They are often monthly estimates with a true-up every April. If its in the lease and you have executed it, then you owe the money. Hope this helps.

Dec 2, 2016
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Chris R.
Broker/Agent
Denton, TX

The term Modified Gross Lease is just that. A Gross Lease that has been modified in some way. Many modifications could be made that would be particular or peculiar to a specific property condition or situation and it just reflects what the 2 parties agree to going forward.

Dec 2, 2016
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John W.
Broker/Agent
Atlanta, GA

Yes, a tenant should pay for their portion of water, sewer, trash, and common area, after all, the Landlord isn't using any of those items, only the tenant(s) is/are. One thing you can do to protect yourself is to ask for the records of those items and make sure that you aren't being over charged.

Dec 2, 2016
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