our landlord is now asking for our tax returns before negotiating a new lease. is this legal?

In Leasing Property - Asked by Jackie A. - Feb 22, 2012
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Answer(s)

Rob M.
Lender/Mortgage Broker
Houston, TX

What does your lease say? Are there reporting requirements?

Feb 22, 2012
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Debbie C.
Broker/Agent
Indianapolis, IN

Yes, but they should not need your whole tax return.

Feb 22, 2012
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Tayyar E.
Broker/Agent
La Jolla, CA

I think since like you said its a new lease ,the landlord can ask for financials. The recent financial condition of the tenant has an importance for the landlord. i would think the landlord wants to negotiate lease based upon the financial strength. Its not something to be alarmed about. Good luck on your new lease.

Feb 22, 2012
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Tommy L.
Novato, CA

Yes.

Feb 23, 2012
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Deno B.
Broker/Agent
Farmington Hills, MI

No, this is not illegal. As others have stated, your financial strength as a tenant is of importance and consequence to the landlord.
Having said that, you also have the ability to say no to this request. It's a negotiation.

Feb 23, 2012
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gunther p.
Owner/Investor
Westmount, QC

I agree ...negotiate. I do not let anyone see my financials! Given the current market trends in commercial leasing your landlord should be happy that you are offering a renewal! You have a track record obviously and you need not negotiate from a point of weakness.
I wouldn't be surprised if down the road there is a landlord ready to offer you a better deal...then a financial statement is expected and you also are oised to gain a saving in rental costs etc.
The economy is bleeding to death and commercial interest rates are about 1.75% higher than Canada and given where you reside they may even be as high as 5.65%. Negotiate a lease with zero increase and you will probably get it...no landlord wants to loose tenats..I know I am one!

Feb 23, 2012
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