can the landlord in a commercial lease charge you a higher amount than the amount paid for property taxes?

Received the CAM breakdown for this year and it lists a higher real estate tax amount than what the Landlord actually paid.
In Leasing Property - Asked by jen l. - Mar 10, 2016
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Answer(s)

Dennis G.
Broker/Agent
Pasco, WA

Depends on the lease contract that covers real estate taxes. Many Landlords present this as a pass through, while i have seen (very very few) charge an administrative or accounting charge to do so. It all boils down to the terms of the Lease agreement.

Mar 10, 2016
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Kirven B.
Broker/Agent
Suwanee, GA

CAM charges are typically estimated during the lease-year subject to "year-end actual reconciliation", so CAM is not intended to be a profit center. Your Lease document should clearly define how taxes, insurance and CAM charges are to be handled. If your landlord insists upon trying to charge you and other tenants a higher charge for real estate taxes than the actual amount, you may have to have a real estate attorney review your lease and advise you as to what remedies you might have.

Mar 11, 2016
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Chris R.
Broker/Agent
Denton, TX

Any charges that are passed on to you such as taxes, insurance, maintenance would typically be based on prior period actual expenses. There may be a provision to permit add in of an admin / accounting / management fee. Review the lease. Upon receiving true charges - for taxes, maintenance, insurance - the charges to the tenants would be reviewed and justified to them for any adjustments needed to be made either up or down and sufficient proof be provided as to the source of those expenses. The only way you could be charged a higher amount than the actual expenses would be if there is a clause for admin type fees to be added in to the mix.

Mar 18, 2016
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